Continuing to pay into a pension

madeinireland_2

I have a DB pension and a DC pension. I am thinking of crystallising the DC before the LTA is reduced (i.e. Take the 25% tax free.)

Is there any penalty? I seem to recall someone saying that my future annual allowance would be reduced to £10k.

Is that true or have a got that wrong as I want to continue to contribute beyond that amount into my DB scheme or indeed maybe my DC scheme?

Thanks...

Linton

The allowance is reduced to £10K if you take anything beyond the 25%. Just taking the 25% is OK. You will need to check if you can take 25% from the DC pension and leave the rest invested or whether you will have to transfer the whole pension elsewhere first. Also check that there are no guarantees that would be jeopardised.

madeinireland_2

Ok thanks for that confirmation