You’ll know if you’ve taken money from your pension fund that the first payments are rarely as much as you’d expect. Since the invention of flexible pensions, HMRC have insisted that providers take tax at emergency rates, then apply for a tax code; payments should then be adjusted if anything’s owing. If you take a one-off payment, it has to be assumed it will be a monthly amount, so an even bigger whack of tax is taken. It’s then up to you to fill in the right forms and get back what’s owed. So, a quick-fix, sugar-rush boost to the taxman’s balance sheet, sometimes permanent as many won’t bother to or know they should be reclaiming. There has to be a better, less fiddly, and time-consuming way for all concerned in this age of tech. Hasn’t there?
“Why you should never retire”
On my 50th birthday, I will always remember, amongst the card or two I received was a letter from Saga’ who’d managed to find out my age through the wonder of the internet, and were pleased to tell me I now qualified to join my parents and go on holiday with them.
