New Pension rules query

CALLUM_2

I contacted my Personal Pension plan people and asked them if I can take a 25% tax free lump sum. They said I could but I would have to buy an annuity with the remainder. I didn't want to do this, as I wanted to be able to take the other 75% next April. So the only option I had was to wait until next April when I can withdraw 25% tax free and the other 75% at marginal tax rate.My question is. If I was to take the 25% now and take out an annuity with the remaining 75% come next April could I take the remaining funds that are left in the plan. :think:

[Deleted User]

How much money is in the pot? Also how old are you?

dunstonh

f I was to take the 25% now and take out an annuity with the remaining 75% come next April could I take the remaining funds that are left in the plan.

No. The 75% would have bought the annuity.

You could look at unsecured income options though, including capped drawdown.

PensionTech

Actually you may be able to take the 25% now and leave the 75% invested until next year. You usually have a maximum period of 6 months between taking the PCLS and then using the rest of the fund for income, but HMRC has recently increased this period to 18 months - so you will have until October/November 2015 to take the rest of your benefits, by which time you can take advantage of the new flexibilities.

This is however subject to your scheme allowing you to do this.

If you'd like to read HMRC's guidance, you can find it by Googling HMRC pension flexibility guidance - I can't post links yet!