Mixed Deferred Benefits and Money Purchase with Tax Free Lump Sum

didsbury

I turn 60 in September. I have received a letter detailing my benefits from the BT Pension Scheme – Section B. This includes a lump sum of £19K.

I also have two other “money pot” pensions. These total around £36K.
I believe that I can take 25% of the money pot pensions tax free i.e. around £9K.

My question is whether that by forgoing all of the BT lump sum (and thereby receiving a larger annual pension) I can take a larger lump sum tax free from the money pot pensions?

mania112

No, they're separate pots and the max you can take is 25% from each

didsbury

Thanks for the quick answer. Sad though, I thought it was a great idea!

jem16

didsbury wrote: »

I turn 60 in September. I have received a letter detailing my benefits from the BT Pension Scheme – Section B. This includes a lump sum of £19K.

I also have two other “money pot” pensions. These total around £36K.
I believe that I can take 25% of the money pot pensions tax free i.e. around £9K.

My question is whether that by forgoing all of the BT lump sum (and thereby receiving a larger annual pension) I can take a larger lump sum tax free from the money pot pensions?

Are the money purchase pensions AVCs and linked with your BT pension? Or are they totally unrelated?

didsbury

jem16 wrote: »

Are the money purchase pensions AVCs and linked with your BT pension? Or are they totally unrelated?

They are not AVCs and are unrelated and date from after I left BT.

jem16

didsbury wrote: »

They are not AVCs and are unrelated and date from after I left BT.

Then mania112 is correct. AVCs with BT could have allowed what you were contemplating.