Two pensions

aytch

I have read the MSE guide to pensions and cannot find an answer to my query.
I am fortunate I have a public sector final salary pension and a small private pension. I am 55 later this year.
When my public sector pension starts I am entitled to take a lump sum on retirement. My choice how much up to set limits.
I can now take 25% of my private pension before retirement.
If I take this 25% will it impact on the lump sum I can get when I take my main pension? Or are both pensions treated separately

I am worried if I opt to take 25% of my small pot then I will impact on my main lump sum.

Thank you for any clarity

OldBeanz

One does not impact on the other unless you try to re-cycle one into the other.

You are not under any obligation to take the private pension at 55.

You may find better value using cash from your private pension and maximising your public sector pension.

You may be able to retire early by judicious use of your private pension prior to taking your ps pension.

AlanP_2

Generic observations on LGPS scheme are that commuting some of the index linked annual pension to lump sum at a rate of £12 to £1 is not a great idea as the ratio is so poor.

Pre 2008 pension has a built in lump sum element so that is different.

Whether to do it or not depends on your personal circumstances obviously (health, surviving spouse etc) but don't rush straight into commuting across to a lump sum.

DC pot lump sum is different as there is no commutation rate to consider, just a simple 25% of the pot value.