Crystallising a pot

tony4147

I'm 53 and have 4 pension pots, 2 that are paid up, 1 that is a SIPP and a Company DC that I make my pension payments into.
Looking to move house in the near future and just reviewing finances etc.


To reduce my mortgage I'm thinking that at 55 I MAY like to access the SIPP and withdraw the TFLS to pay down my mortgage.


As I have never crystallized a pension I'm a bit in the dark, if I were to crystalise the SIPP and take the TFLS would it have any bearing on my other pensions schemes?


Will there be a limit on how much I can continue to pay into my Company DC scheme, currently I pay £18k/yr?


I'm have no intention of drawing down from the SIPP until mid 60's, would I still be able to invest in the same funds etc if the pot is crysatlised?

dunstonh

To reduce my mortgage I'm thinking that at 55 I MAY like to access the SIPP and withdraw the TFLS to pay down my mortgage.

Why would you want to do that?

1 - You will reduce your income/future tax free lump sum in later life by taking lump sums out so early
2 - mortgage interest rates are at all time lows and investment returns are typically exceeding mortgage interest by around 2-3 times the mortgage interest.

Will there be a limit on how much I can continue to pay into my Company DC scheme, currently I pay £18k/yr?

Not if you only take the 25%.

would I still be able to invest in the same funds etc if the pot is crysatlised?

Yes. Although it will be segmented to have a crystallised pot and an uncrystallised pot. How the provider you use does this varies.

atush

I personally would not raid a pension at an early age to pay off part or all of a mtg that is at such very low rates.

I also would not be upgrading my house ont h run up to taking a pension (i'll be downgrading myself).

Would update to new cars just before retirement though (from savings built up for the purpose- not my pension).

AnotherJoe

atush wrote: »

I personally would not raid a pension at an early age to pay off part or all of a mtg that is at such very low rates.

I also would not be upgrading my house on the run up to taking a pension (i'll be downgrading myself).

Would update to new cars just before retirement though (from savings built up for the purpose- not my pension).

The OP might well be 10-15 years off retirement. He doesn't mention retiring just taking the TFLS from one pension.

tony4147

AnotherJoe wrote: »

The OP might well be 10-15 years off retirement. He doesn't mention retiring just taking the TFLS from one pension.

Taking the TFLS from 1 pension at 55 may allow me to contribute more into the pension I pay into now, and as a HRT there is also the relief. Not planning on retiring until 64/65 or crystallizing any other pension.

PensionTech

Taking the TFLS from 1 pension at 55 may allow me to contribute more into the pension I pay into now

Beware of recycling rules then.