Please confirm ny thoughts re TFLS

Mnd

If a person takes less than 25% of their fund, no drawdown of the remainder,will they be resticted in later years to contributions. Salary 25k

coyrls

Assuming your less than 25% is the PCLS (Pension Commencement Lump Sum), then no, only the standard restriction of relevant earnings and the £40K (plus any carry forward) limit will apply.

Why do you specify "less than 25%", are you planning a partial [FONT=&quot]crystallisation[/FONT]?

EdSwippet

Mnd wrote: »

If a person takes less than 25% of their fund, no drawdown of the remainder,will they be resticted in later years to contributions.

No. From this explanation from Aegon:

The MPAA will not apply in the following circumstances:
...
Taking a pension commencement lump sum, and
- buying a lifetime annuity (i.e. not accessing new flexible annuity options), or
- moving to a flexi-access drawdown arrangement and taking NO income.

Note that using UFPLS does trigger the MPAA, so you will want to be careful about how you access the PCLS, then. Also, the government regularly changes the rules in this area, so relying on stability for that and... well, really anything to do with pensions, would be inadvisable.

Mnd

That's what I thought.thank you..I appreciate the rules might change