Flexi-access Drawdown - difficult application form

bernardchalls

The govt are not reliable and they are always trying to increase taxation. Take the money and put it in an ISA

zagfles

tenchy wrote: »

Interesting. Prior to retiring, all the presentations I went to concerning pensions suggested that nearly everyone takes the 25% straight away. My thinking is that it's safer to do so, in case the government decides to reduce the tax free percentage at some point - and I have some other plans for the full 25% anyway. However, thanks for the information about the current situation - I'll review my options again before finally submitting my form. In a word or two, what do you reckon is the reason for this: leave uncrystalised funds for - hopefully - future growth, persumably?

Funds can grow crystallised or uncrystallised, that's not an issue. Issues are the LTA, inheritance, what you're going to do with the 25% TFLS (& tax). For a lot of people full crystallisation does make sense. Another option is taking UFPLS's.

zagfles

bernardchalls wrote: »

The govt are not reliable and they are always trying to increase taxation. Take the money and put it in an ISA

What makes you think ISA taxation won't change?

EdSwippet

dunstonh wrote: »

The longer you leave it, the greater the 25% [tax free lump sum] will be. ...

... provided your pension lies within the lifetime allowance. Once above, the longer you leave it, the greater the lifetime allowance 25% excess tax charge becomes, with no increase in the tax free lump sum. Probably a minor point in the context of this thread, but worth clarifying for anyone else reading it and with a pension approaching or above the lifetime allowance.