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Help Please :- Belated 25% Tax Free Lump Sum !
jayjays
Posts: 75 Forumite
Hi,
I retired in 2006 & started receiving my Final Salary Pension, I elected not to take any " Tax Free Lump Sum ", I could have taken circa £80k.
I have since gone back to work & invested £100K in a Hargreaves Vantage Sipp.
When I decide to "hang up my pencil", can I just take 25% Tax Free Lump of the £100k or is there an opportunity to add the "unused £80k", resulting in me taking the whole £100k pot Tax Free ?
I am probably being stupid , but this question occurred to me today whilst discussing my "Lifetime Allowance", which obviously calculates both pensions as 1 ...Any help gratefully received
I retired in 2006 & started receiving my Final Salary Pension, I elected not to take any " Tax Free Lump Sum ", I could have taken circa £80k.
I have since gone back to work & invested £100K in a Hargreaves Vantage Sipp.
When I decide to "hang up my pencil", can I just take 25% Tax Free Lump of the £100k or is there an opportunity to add the "unused £80k", resulting in me taking the whole £100k pot Tax Free ?
I am probably being stupid , but this question occurred to me today whilst discussing my "Lifetime Allowance", which obviously calculates both pensions as 1 ...Any help gratefully received
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Comments
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Only25% against the HL SIPP. You cant go back and change an earlier event.When I decide to "hang up my pencil", can I just take 25% Tax Free Lump of the £100k or is there an opportunity to add the "unused £80k", resulting in me taking the whole £100k pot Tax Free ?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Cheers for the SPEEDY reply Dunston , guess I have to work a little longer :-(
Thanks Again0 -
DB pensions (salary related) work very differently from DC pensions ('pots').
When you chose to not take a lump sum from the final salary pension you automatically received a higher monthly pension, and indexed for life too.The questions that get the best answers are the questions that give most detail....0 -
I am probably being stupid , but this question occurred to me today whilst discussing my "Lifetime Allowance", which obviously calculates both pensions as 1 ...Any help gratefully received
Depends when exactly it was in 2006 because 2006 was a very significant year in the pension world. Was it before 6 April 2006 or after?Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.
Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.0 -
Thanks Hero , I actually received my 1st DB pension payment Feb 20070
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Thanks David, yes I made my choice based on RPI growth , however with my SIPP I would take max tax free lump "all day long"0
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