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tax-free pension withdrawal and paying into pension later

A family member of mine is nearing 55. He wants to take 25% of his pension tax-free when he hits 55, but continue to pay into the pension via monthly contributions until he retires. Can he make any further tax-free withdrawals after the first withdrawal at 55?

Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Yes; 25% of his further contributions.

    If it's an employer's scheme he needs to check that it permits what he wants to do.
    Free the dunston one next time too.
  • xylophone
    xylophone Posts: 45,986 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    A family member of mine is nearing 55. He wants to take 25% of his pension tax-free when he hits 55, but continue to pay into the pension via monthly contributions until he retires. Can he make any further tax-free withdrawals after the first withdrawal at 55?

    If he takes 25%, any further withdrawals will be treated as income and taxed at the rate appropriate to his circumstances.

    If he makes withdrawals on top of the 25%, he should check whether this applies.

    https://www.aegon.co.uk/news/news-articles/money-purchase-annual-allowance.html
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