Attempting to shore up current pension fund for myself and OH for intended retirement in the next fifteen years or so. I know many people suggest the bigger pot the better but I'm not seeing the point of shovelling in bigger amounts now to avail of the tax break, only to be taxed at the higher rate anyway upon taking it out on retirement (tax-free lump sum aside).
Assuming we both also qualify for the state pension (class contributions are fully paid up no reason why we shouldn't), I'm trying to determine what size pot we should be aiming for in order to keep us in the lower-rate tax bracket at that time? Guessing prevailing individual tax free allowances will be taken into account also.
So basically, do you get to decide how much your pension pot 'pays' you upon retirement, and can you decide to take out as much/little as you like so as to maximise tax-efficiency?
None of the pension payout calculators I'm using seem to take taxation on the far end into account (other than the tax-free lump sum) so I'm a bit bamboozled!
Thank you
Assuming we both also qualify for the state pension (class contributions are fully paid up no reason why we shouldn't), I'm trying to determine what size pot we should be aiming for in order to keep us in the lower-rate tax bracket at that time? Guessing prevailing individual tax free allowances will be taken into account also.
So basically, do you get to decide how much your pension pot 'pays' you upon retirement, and can you decide to take out as much/little as you like so as to maximise tax-efficiency?
None of the pension payout calculators I'm using seem to take taxation on the far end into account (other than the tax-free lump sum) so I'm a bit bamboozled!
Thank you