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    • Dalglish
    • By Dalglish 15th Jul 17, 3:19 PM
    • 151Posts
    • 16Thanks
    Dalglish
    Pension freedom at 55years old
    • #1
    • 15th Jul 17, 3:19 PM
    Pension freedom at 55years old 15th Jul 17 at 3:19 PM
    I've got 3 pensions from previous employment and would like to draw 25% as cash next year when I turn 55.
    Question i have is how to do this? Am I entitled to draw the 25% from one of these 3 pensions or does it need to be spread across all three evenly?
    Finally would it be advisable to involve an IFA to assist me with this matter?
    Many thanks for any help!
Page 1
    • mandiskem
    • By mandiskem 15th Jul 17, 3:31 PM
    • 108 Posts
    • 39 Thanks
    mandiskem
    • #2
    • 15th Jul 17, 3:31 PM
    • #2
    • 15th Jul 17, 3:31 PM
    my partner has taken a trivial lump sum for his pension they asked him about if he had any other pensions hes took a trivial amount out within 12 months think you can only draw 1 out within 12 months
    • bigadaj
    • By bigadaj 15th Jul 17, 6:07 PM
    • 9,360 Posts
    • 5,981 Thanks
    bigadaj
    • #3
    • 15th Jul 17, 6:07 PM
    • #3
    • 15th Jul 17, 6:07 PM
    You are allowed to draw 25% of any pension, so as they are all individual you can take up to 25% from all three at any time after you are 55.

    You obviously can't take more than 25% from any one though, even if you draw less from another.

    Are these all defined contribution or is one or more defined benefit as that needs to be considered.

    Also check the details with the pension provider before crystallising, older pension plans can be restrictive so it's worth knowing what effect this will have. If it is then you should be able to transfer out, potentially cobining the plans, and put them into drawdown having full flexibility.

    An ifa can help and be of use but isn't absolutely required unless there are guarantees on your pensions.
    • Cygnus Alpha
    • By Cygnus Alpha 15th Jul 17, 7:04 PM
    • 180 Posts
    • 291 Thanks
    Cygnus Alpha
    • #4
    • 15th Jul 17, 7:04 PM
    • #4
    • 15th Jul 17, 7:04 PM
    Don't forget to think about the tax implications of drawing money out of your pension. It will be added onto your income for that year for tax purposes.
    • mandiskem
    • By mandiskem 15th Jul 17, 7:21 PM
    • 108 Posts
    • 39 Thanks
    mandiskem
    • #5
    • 15th Jul 17, 7:21 PM
    • #5
    • 15th Jul 17, 7:21 PM
    Don't forget to think about the tax implications of drawing money out of your pension. It will be added onto your income for that year for tax purposes.
    Originally posted by Cygnus Alpha
    what about the ones who are ill of health and not paid any tax since 2011
    • coyrls
    • By coyrls 15th Jul 17, 7:58 PM
    • 798 Posts
    • 786 Thanks
    coyrls
    • #6
    • 15th Jul 17, 7:58 PM
    • #6
    • 15th Jul 17, 7:58 PM
    Don't forget to think about the tax implications of drawing money out of your pension. It will be added onto your income for that year for tax purposes.
    Originally posted by Cygnus Alpha
    The 25% tax free lump sum or Pension Commencement Lump Sum (PCLS) as it is officially called will not be added to your income that year for tax purposes.
    • Dalglish
    • By Dalglish 16th Jul 17, 6:24 PM
    • 151 Posts
    • 16 Thanks
    Dalglish
    • #7
    • 16th Jul 17, 6:24 PM
    • #7
    • 16th Jul 17, 6:24 PM
    thank you each and every one of you for these valued comments :-)
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