Aged 55 and 25% tax free

Options
Dalglish
Dalglish Posts: 194 Forumite
First Post First Anniversary Combo Breaker
in Pensions, annuities & retirement planning
I’ve got four pensions from different employers over my career and I’d like to know is there a way to draw 25% tax free once I turn 55?
I’m unsure if I have to write to each or is there a standard form or money saving expert template letter I could use?
Would I be advised to use an IFA for this purpose?
Many thanks in anticipation 😊

Comments

  • Linton
    Linton Posts: 17,212 Forumite
    Name Dropper First Post First Anniversary Hung up my suit!
    Options
    No standard form. You will need to contact each one ndividually. I can't see much point in using an IFA except that he may ask you the question "why?". What are you going to do with the money? There may be better ways of managing things.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    Dalglish wrote: »
    I’ve got four pensions from different employers over my career and I’d like to know is there a way to draw 25% tax free once I turn 55?

    Are any of them Final Salary pensions?
    Free the dunston one next time too.
  • Dalglish
    Dalglish Posts: 194 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Hi both ... no final salary (as far as I know) ...
    Earliest dates from 1990-1993 but almost certain it’s a money purchase scheme.
    Nothing definitely planned what to do with the money ... I’ll see what the companies say
  • Alexland
    Alexland Posts: 9,665 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    In which case have you considered leaving it invested and just drawing out an extra 25% tax free each month when you start taking your pension payments? For some people can be an effective way of avoiding paying any income tax in retirement. By taking the cash in lump sums you are making it part of your estate for inheritance tax.
  • dunstonh
    dunstonh Posts: 116,486 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    The transaction you are requesting is called income drawdown. It will be taking the 25% and zero income.

    Whilst most modern plans retail pensions will allow income drawdown, you will find most legacy pensions (old ones) will not. Stakeholders dont usually nor do most auto-enrolment schemes or occupational pensions.

    Companies may only tell you what options they have. Not all the options available. So, be careful on the info you get and remember it will not cover everything.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.8K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.5K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards