Pension

hayleydaley

In the process of withdrawing one of my pensions to help my son,
Can I still withdraw on my other pensions

1. lump sum 8500 then pension of 140!per month roughly

2 is a pot of 29000 be 25% then rest taxed at 20%. Rough figure
Or do I have to wait till new tax year

Thanks

jamesd

For 1 it is probably not necessary to have a £140 per month income if you want more money up front instead. Please say more about what pension this is. Just by waiting until 6 April or later you can probably get it all as a lump sum. The main exception is work-related final or average salary pensions.

For 2 it's probably best to wait until the new tax year unless having your annual allowance for new pension contributions reduced from £40,000 to £10,000 is a problem.

If you say more about why you want to do this to help your son we might come up with other options that could be better.

Linton

Is (1) a Defined Benefits "final salary" pension? I assume it is as you know what income it will provide. If and when you can take it and how much you get if you are taking it early depends on the scheme. You will need to ask them.

You will be allowed to access the whole of pension (2) in the new tax year when the rules change. The 75% will be regarded as income and so the total tax payable will depend on any other income you may have and your tax allowance.

To access pension 2 you may have to transfer it elsewhere to get at the money. Pension providers may not be able/willing to give you access to the new freedoms on all their pensions. Talk to your pension provider.

hayleydaley

1 pension is final salary
2 pension is with friends provident,
I am retired and claim no benefits.
Downsized on property so using the money to live on.

hayleydaley

1 pension is final salary
2 pension is with friends provident,
I am retired and claim no benefits.
Downsized on property so using the money to live on.

atush

why not live off your pensions and give him downsize money?

jamesd

Considering your situation for the moment, have you reached state pension age yet? I'm asking because for those in normal good health and normal life expectancy it's a good deal to defer the state pension because that pays more than typical investments and usually a lot more than an annuity would pay.