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  • FIRST POST
    • paulfoel
    • By paulfoel 13th Mar 17, 2:52 PM
    • 5,286Posts
    • 2,511Thanks
    paulfoel
    Pension drawdown at 55
    • #1
    • 13th Mar 17, 2:52 PM
    Pension drawdown at 55 13th Mar 17 at 2:52 PM
    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?
    Cymru am Byth !!!
Page 1
    • kidmugsy
    • By kidmugsy 13th Mar 17, 3:22 PM
    • 9,317 Posts
    • 6,109 Thanks
    kidmugsy
    • #2
    • 13th Mar 17, 3:22 PM
    • #2
    • 13th Mar 17, 3:22 PM
    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?
    Originally posted by paulfoel
    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
    • By xylophone 13th Mar 17, 4:00 PM
    • 21,600 Posts
    • 12,418 Thanks
    xylophone
    • #3
    • 13th Mar 17, 4:00 PM
    • #3
    • 13th Mar 17, 4:00 PM
    Is this a scheme provided by your employer to which you are still contributing?
  • jamesd
    • #4
    • 13th Mar 17, 5:58 PM
    • #4
    • 13th Mar 17, 5:58 PM
    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.
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