Pension drawdown at 55

paulfoel · 13 March 2017 at 3:52PM

Understand you can take 25%. Is this tax free? Even if you're still working?
i.e. Can you continue working as well?

What are the options with the remaining 75% then? Can you keep it in pension for later? Do you then have to buy an annuity or can you do further drawdowns later?

Is it 55th birthday or end of tax year afterwards? If so, isnt it worth bunging the max in the year before because you'll save tax and can get 25% back in a bit anyway?

kidmugsy · 13 March 2017 at 4:22PM

paulfoel wrote: »

Understand you can take 25%. Is this tax free? Even if you're still working?
i.e. Can you continue working as well?

What are the options with the remaining 75% then? Can you keep it in pension for later? Do you then have to buy an annuity or can you do further drawdowns later?

Is it 55th birthday or end of tax year afterwards? If so, isnt it worth bunging the max in the year before because you'll save tax and can get 25% back in a bit anyway?

Para 1: yes; yes; yes.
Para 2: many people probably just keep it for later when they might be able to drawdown with less tax to pay.
Para 3: birthday. yes.

xylophone · 13 March 2017 at 5:00PM

Is this a scheme provided by your employer to which you are still contributing?

jamesd · 13 March 2017 at 6:58PM

You don't have to buy an annuity. Normally the 75% just goes into a drawdown account that you can draw from whenever you like.

You shouldn't normally take money from the drawdown account while still working because that will cut your annual limit for pension contributions to £4k a year.

Pension drawdown at 55

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