Pensions

Tinio

I am already in receipt of a civil service pension but have an additional volentary pension pot due in two months time when i am 60. This has a pot of £16000 as this is under the £18000 threshold can i take it all as a lump sum?

jem16

Tinio wrote: »

I am already in receipt of a civil service pension but have an additional volentary pension pot due in two months time when i am 60. This has a pot of £16000 as this is under the £18000 threshold can i take it all as a lump sum?

No because triviality takes into account all of your pensions, not just one. As you already have a civil service pension this will put you way over the limit.

If your civil service pension is £20k or over you can use flexible drawdown to access the AVC pot although you may have to transfer it first. This would allow 25% tax free and the rest taxed as normal income.

Tinio

Thanks thought that - Unfortunately my actual pension is only £11k

jamesd

With 11k of civil service pension you might end up over the threshold when your state pension payments start. Depends just how high they will be and what inflation has done to the pensions and the threshold by then.

So one thing you could do is take the lump sum at 60 and leave the rest invested until later, then hope to be over the limit then.