Rules about TFLS

tony4147

I would like to understand the rules etc in taking the TFLS

Say, when I'm 55 I have a pension pot of £200K, can I take my £50K TFLS leaving £150k in the pot. Then when I'm 65 say that the £150K with additional contributions and growth is then worth £300K, can I take 25% of £300K-£150 = £37.5K?
(I would in effect be taking 25% TFLS on the additional contributions and growth over the 10 years).

Do I have to crystallize my pot in order to take the TFLS? do I HAVE to take my pension or can the pension be deferred for several years after taking the TFLS?

dunstonh

Say, when I'm 55 I have a pension pot of £200K, can I take my £50K TFLS leaving £150k in the pot.

You can commence the pension with a 25% lump sum and nil income at 55. THat part of the pot becomes crystallised. It also comes with consequences.

Then when I'm 65 say that the £150K with additional contributions and growth is then worth £300K, can I take 25% of £300K-£150 = £37.5K?

The new contributions will be uncrystallised. That part of the part will be segmented away from the crystallised pot. You can then take 25% of that pot later.