Abbey Life Paid Up - Tax Free Lump Sum %

otherwayup

My annual statement from an old paid-up unit-linked pension just came through. It has a combined Former Pro. Rights and Non Pro. Rights value of about 35k. Started in '89, paid up '96.

I'm 45 so a little away from retirement yet, but as this was the only pension I was paying into at that time, will I only be able to take 25% of it as Tax Free Lump Sum?

In the back of my mind I'm starting to wonder if I could take all of it as a Tax Free Lump and take less from my subsequent employment Final Salary Scheme.

My thinking is that an Annuity from such a small fund will be pathetic after fees.

So, will I be limited to 25% of this fund or take all of it (up to 25% of both funds combined)?

Thanks.

dunstonh

will I only be able to take 25% of it as Tax Free Lump Sum?

As legislation currently stands and assuming it is not a hybrid scheme (unlikely) then yes.

In the back of my mind I'm starting to wonder if I could take all of it as a Tax Free Lump and take less from my subsequent employment Final Salary Scheme.

Whilst technically possible under legislation, you wont find an employer or pension provider that will do it on schemes where there is no linking. Only a minority of pensions do it where there are linked schemes.

kidmugsy

If your eventual final salary pension and State Pension sum to over £20k p.a. (current figure) then you will be able to opt to do a Flexible Withdrawal from your old pension.