Prudential pension - new rules questions

jimmeee

Hi,

My brother has a personal pension with prudential. He is 55 in a few months time. The pot has around 36k in it.

Before yesterday, we knew the max he could take out was 25% tax free.

However we are now unsure on what to do now. He wants to have access to all the cash as he is looking to use it towards buying a property. This is his only pension so he would not qualify for flexible drawdown.

What are the options available to him now following the budget? Is there a way for him to access his pot when he turns 55?

From what we have figured out, it looks like nothing has changed for his scenario until at least 2015? If this is the case what does he need to do with the pot until the new rules come into effect?

If he needs to wait till next year, then is there a way to access some of the cash now (25%??), them withdraw the rest next year?

Thanks for any help.

jimmeee

Bump - can anyone help me shed some light?

Thanks

enator

If he wants to access the cash once 55, he can take 25% tax free and then move to capped DD (150% of GAD rate) or take no income at all.


The only issue is that the Govt have not confirmed what will happen to DD's that have commenced before the new rules come in next year - there is a possibility that he will be unable to access the remaining amount as a lump sum & will have to carry on with the capped DD.