Declaring retirement

mapryan

Hi

This is a general question about retirement. I have a colleague who has two pensions pots - one with our present employer and another from his days at a large ex-public utility company. We were talking about how you could take a 25% tax free lump sum out of the fund when you retire, however this is where we had a bit of confusion. I was under the impression that you had to declare yourself "retired" and at that point you invoke whatever you decide to do across all your pension funds. He thinks he can declare retired on one, and keep the other going (ie, adding contributions) then declare himself retired to the second pot at a later date.

I have a feeling I have drastically over-simplified the situation here, but would be interested in other people's opinions in general terms to the question of how you declare yourself retired and how this affects the different pension funds you may have

Thanks and Regards

Mike

deemy2004

Once you reach the funds pensionable age you can start drawing your pension from that fund.. you can at the same time continue working, contribute to other pension funds.

So your friends right.

Cook_County

and even these rules change on A day...

mapryan

Thanks for the replies. My argument wasn't based on any kind of research, but from a longtime experience that all rules relating to tax invariably suit the taxman rather than the individual. Therefore, I would have imagined they would prefer to see everyone's retirement status decided on a single day and that was that.

Thanks and Regards

Mike