Pension 25% Tax free

nanx4

Hi,

I finished working 2 years ago and had a small company pension ,from which i had the 25% tax free sum

I have another small pension that was from many years ago.
I am wondering about drawdown, but could i have the 25% amount this time , or would this be taxed

Thank you for any help

xylophone

This small pension is entirely separate from the first?

What type of pension is it?

dunstonh

The 25% tax free lump sum is tax free. Hence why it is referred to as tax free lump sum (although its proper name is pension commencement lump sum, many still call it tax free lump sum).

What you did with one pension has no impact on what you can do with another pension (as long as its not over £million) Its 25% from each one.

nanx4

xylophone wrote: »

This small pension is entirely separate from the first?

What type of pension is it?

Thank you
The pension is a with profits pension i had from a former job, i have never paid into it for nearly 20 years

The total fund is £43,000,

xylophone

The OP hasn't said what type of pension this is.

If it is deferred DB, it may not be quite as clear cut? For example, there could be an "automatic" lump sum?

If it is a simple DC pension then in principle the 25% PCLS would be available with the possibility of drawdown for the balance.

xylophone

The pension is a with profits pension i had from a former job, i have never paid into it for nearly 20 years

The total fund is £43,000,

Our posts crossed.

It would seem that the 25% PCLS would be available.

You need to contact the provider (insurance company?) to see what options they offer for the balance.

If the options you require are not available, you would need to consider a transfer to another provider.

https://www.pensionwise.gov.uk/

greenglide

So it has a GMP and the GMP is greater than the value of the fund? This would explain why the PCLS is not available.

You could transfer to another provide but this would lose any potential valuable guarantees.

You really, really, need to understand exactly what this pension is.

dunstonh

Also, if it is a company scheme, it is unlikely to allow income drawdown. So, a transfer may be required to facilitate income drawdown.

nanx4

xylophone wrote: »

Our posts crossed.

It would seem that the 25% PCLS would be available.

You need to contact the provider (insurance company?) to see what options they offer for the balance.

If the options you require are not available, you would need to consider a transfer to another provider.

https://www.pensionwise.gov.uk/

Yes ,The company who im with dont do a drawdown,

I have inquired about moving to Hargreaves Lansdown and am waiting for the information.

Thank you so much for your help