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I should know all of this, but are the tax rates as per income tax?
Yes, when you get your pension it's treated as income and income tax is due as expected.
The age 55 or 57 thing will depend on your age, when you took your pension, etc. As long as I keep one of my old employer pensions I'll be able to take that from 55. My more recent employer pensions will all be from 57 (as the age changes to 57 from 6th April 2028 and I won't be 55 before then). If I moved my oldest employer pension into a new pension I may lose the ability to get it at 55. Google NMPA for more info on all of this.
As a generalisation: when saving you either:
a) Put money from your pre-tax salary into something like a pension and it is taxed on the way out.
b) Put money from your post-tax salary into something like an ISA and the results of that are tax free.The point is that by the time it gets into your grubby hands you have paid tax on it at least once.
Greenbank-
Thank you!
I have a chunk in one pension which I paid into from 2001 to 2014. That's stuck where it is unless I end up working somewhere which will allow the amount to be transferred into the new pension.
Then I have the pension I am currently paying into since 2014.
I'm 45 next year.
The point is that by the time it gets into your grubby hands you have paid tax on it at least once
Eurgh, isn't that so...
Ben689908
Thank you.
I should know all of this, but are the tax rates as per income tax? So 0, 20, 40, 50% - depending on amount (and any additional income)?