Hi There. This is my first post so apologies if 'you've read/heard it' before. I am in a position where I'm likely to retire early, partially due to good pensions and partially to poor health but nothing drastic.
My children are 13 and 17 so are still my responsibility in terms of payment etc etc. I have remarried and my wife is older than me and has already started to collect her pension so my question is do the CMS have access to 1) any pension or lump sum I choose to withdraw from it but also 2) can they access my wife's wages/pension as she plans to work on for a couple of years and collect one of her pensions at the same time.
I regularly see my kids and provide them with money etc directly if that makes any difference. Before I make any final decision or announce my retirement I wanted to ask these questions....
1. They wont be able to touch your partners wages, this is completely irrelevant.
2. In terms of lump sum, is this tax free? If it is then I am not sure whether the HMRC will see this and therfore the CMS.What you may get stung with though is whether you go over to savings limit of approx £31k. Anything over the £31k, then the CMS will add 8% of this access to your annual earnings and are assessed on this accordingly.
I'm not an expert, so don't take this as gospel, but it seems logical. But the CMS are far from logical!
Thanks for your comment. Good to know about my wife's position. The lump sum will be tax free and I won't be taking it until June 2023 by which time my eldest will be 21, youngest 17 and a few months. What's the 31k limit? I wasn't aware of this. The lump sum will be circa 90k so I need to find out but have a few years...
I have found the CMS a challenge to deal with and when they set the agreement up I ended up altering the terms so I could advance my ex £500 immediately! All recorded with them.