25% tax free

alans23

is it allowed to take 25% of a pension annuity as a tax free lump sum, and take 25% as a tax free lump sum off an occupational pension also. or are you omly allowed to take from one.

McKneff

You can take the 25% from both as long as you fit the criteria

How old are you.

alans23

i`m 64 and already done it , but someone said you can`t do it and i will be taken to task by the tax man

McKneff

No, its fine, I presume you have turned the rest into an annuity

Enjoy your 25%, at 64 youve earned it..............

(I got mine 2 years ago and blew the lot on a new conservatory, gave the kids some and had a holiday.

Regards
Annie

Zelazny

They were wrong - you can take 25% from each pension that you have. You generally can't take more than 25% from a single pension, but that 25% can be taken from each pension.

McKneff

You can actually in some cases get more than 25%.
I did this because at one time my pension was a final salary pension and then the company changed it to a personal pension . My pension was upped because of this. I also got an enhanced pension because I smoke and i suffer from some ill health.

alans23

thanks guys , i feel easier now

atush

McKneff wrote: »

No, its fine, I presume you have turned the rest into an annuity

Enjoy your 25%, at 64 youve earned it..............

(I got mine 2 years ago and blew the lot on a new conservatory, gave the kids some and had a holiday.

Regards
Annie

Now I see why you are always telling others to spend instead of save- at least you practice what you preach

McKneff

We looked on the lump sum as a sort of bonus atush, we have saved a nest egg for retirement before i left work so that is still intact, getting less only because we keep giving the kids some. Still enough for a rainy day though. The kids can have the house and the car and any money that may be left.
I see no point in doing without nice things and then the kids blow it when Im gone

Regards
Annie

atush

As long as you are happy, that is the main pt. It is your money after all lol.

Zelazny

McKneff wrote: »

You can actually in some cases get more than 25%.
I did this because at one time my pension was a final salary pension and then the company changed it to a personal pension . My pension was upped because of this. I also got an enhanced pension because I smoke and i suffer from some ill health.

I know that some occupational schemes allowed for "Grandfathering" if the entitlement to a tax free cash sum was more than 25% of the pension value prior to A day, but I wasn't sure if that was a transitional rule or if it still applied - so thought I'd best hedge my bets with "generally"