Martin Lewis warns pensioners of crucial 'tax trap' when …

Jul 9, 2024 · Martin Lewis is warning pensioners of a tax trap. The money guru has served up his latest piece of wisdom for retirees pondering the best way to withdraw their hard-earned cash.

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Martin Lewis Warns Pensioners To Avoid Crucial ‘tax Trap’

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Jul 9, 2024 · Martin added: "So let's think about this, you decide you want to take that tax-free lump sum early, you're a 20% rate taxpayer, well if you just take the money out, 75% of the …

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Martin Lewis Warns Of Pension Tax Pitfalls - Perigon

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Jul 8, 2024 · He used the analogy of a Swiss roll to explain how pension pots are taxed, emphasizing that 25% of pension withdrawals are tax-free, while the remaining 75% is taxed …

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Martin Lewis Warns Pensioners Will Be Missing £500 'within Weeks'

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Sep 7, 2024 · Mr Lewis highlighted the importance of claiming Pension Credit, saying: "It's become more crucial than ever to claim Pension Credit because that Winter Fuel Payment that …

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Martin Lewis Warns 1m State Pensioners Missing Out On 'crucial …

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Jul 24, 2024 · An 89 year old woman was able to secure an annual increase of £7,956 after claiming this crucial support for pensioners ... Budget 2024 Savings Pensions Tax Cost of …

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FAQs about Martin Lewis warns pensioners of crucial 'tax trap' when … Coupon?

Is Martin Lewis warning Pensioners of a tax trap?

Martin Lewis is warning pensioners of a tax trap. The money guru has served up his latest piece of wisdom for retirees pondering the best way to withdraw their hard-earned cash. ...

Should pensioners avoid the 'huge pension withdrawal tax trap'?

Earlier on in the show, he explained that the advice is for pensioners to avoid the "huge pension withdrawal tax trap" as well as how they should look at their pension withdrawal in the long-run. The personal finance champion also advised to think carefully about when might be the best time for you to withdraw your pension. ...

Could you lose thousands if your pension is taxed?

And now that warning has been repeated in this week’s edition of the MoneySavingExpert.com newsletter, advising savers they could “lose thousands, or even tens of thousands, from their pension by falling foul of a trap that sees withdrawals taxed”. ...

Is Pension Freedom tax-free?

A lot of what's worth thinking about is tax. "So, pension freedom meant you can keep your money in your pension if you like, think of it a bit like a bank account and you can take your money out when you do. Now many people will know, you generally get 25% of the money you take from your pension tax-free and the rest is taxed." ...

Why is a Swiss roll a tricky part of withdrawing tax?

Martin emphasised that the tricky part of withdrawing tax is knowing exactly when it gets taxed. To simplify this for people, he used a Swiss roll as an analogy to distinguish between the taxable and tax-free parts of your withdrawal. ...

Can you take out a lump sum from a pension?

Withdraw cash lump sums from your pension (not as tax-efficient). Martin said: "You can leave your money invested in your pension pot, then when you take it out, a quarter of it is tax-free and three-quarters is taxed at your marginal rate – in other words, the highest rate of income tax you're paying at that time. ...