Deferring a private pension

[Benjamin]

We visited our local income tax office today to make sure thet we had filled in our forms correctly. The gentleman we spoke to was surprised (suspicious?) that most of our income is derived in my wife's name. She has attained pensionable age and is older than me.

He then went on to ask me if I had any pensions in my name. When I said that I had several private pensions which I had contributed to myself, but was not taking them at the moment (I'm 58) he then told me that if I deferred taking them when they became due then I would still be taxed on them as if I was  receiving them.

When we got home we checked the poicy documents and were relieved to find that on all of them (including some of my wife's)  we had elected  to take the retirement date at the age of 74 years although of course under UK pensions legislation we will be able to take them earlier.

I believe that in the UK now you can take private pensions from the age of 55 years.  Does this mean that the French tax authorities could start to tax the notional income from private pensions from this age?

My French language skills are not brilliant so there us the possibility that somehow I misunderstood what was being said. Has anyone else come across this quirk of the French system?

Benjamin

[Cassis]

You're right in terms of the 55 years age for taking private pension funds in the form of an annuity investment.  Where you say you 'elected' to take at 74 but 'will be able to take them earlier' I guess you mean that your projections are based on a retirement age of 74, which is the pension age you gave your adviser (s)when you started the scheme(s).  I can't see that the hypothetical retirement age on which the fund manager is basing your pension projections would affect whether the French can tax you before you re-invest the fund(s).  It's just a projected value. 

I can't for the life of me see how they can start taxing you on a hypothetical pension before you take out the annuity - after all, who knows what that fund will be worth when you actually re-invest it and what return you will get on the annuity?  They don't tax you on equity investments for this very reason, so I would have thought from a common-sense point of view the same principal should apply. 

Oops sorry - common sense.  I forgot, we're in France now.

Phil

[suein56]

[quote user="Cassis"]They don't tax you on equity investments for this very reason, so I would have thought from a common-sense point of view the same principal should apply. 

Phil
[/quote]

Out of interest - which equity investments do you mean aren't taxed and who are 'they'?

Sue - going quietly crazy trying to fathom the whys and wherefores of French tax forms [eg 3916] for the very first time.

 

[Cassis]

'They' being the tax authorities in France (who else?) and equity investments being investments on the stock exchange (sorry if there's another meaning).  You aren't taxed until you sell your shares - and then obviously only if you've made a profit.

[Benjamin]

Phil

You are correct in your assumption about the projected retirement age.

I also agree entirely with you regarding the calculation of what benefits might be payable when an annuity has not been purchased. I posted this topic in order to see if anyone else had come across this, what to my mind, is an absurd situation, but as you say, this is France.

Benjamin