Another 25% lump sum question

green.lander_2

Hello, i have the following pension pots:

1) Fidelity DC approx £220k still contributing to this one
2) Aviva DC approx £100k
3) NPI DC approx £20k
4) Previous employee DC projected approx £25k pa so assume £500k CETV no lumpsum without significant reduction

Total £840k

I am right in assuming that the 25% lump sum is for the total pot not individual providers so if i wanted could I take £210k say from the fidelity pot?

and if i do this am i still able to contribute to my current employee scheme up to normal annual allowance?

Thank you

Brynsam

25% from each individual pot/provider. Provided you only take (up to) 25% tax free cash you won't trigger the Money Purchase Annual Allowance so yes, you can go on contributing to your current scheme up to normal limits.

Do you mean (point 4) DB scheme? If so that's a different kettle of fish - you get once chance to take a tax free lump at the point you draw your retirement benefits, in exchange for giving up some of your future pension income.

Asghar

green.lander wrote: »

I am right in assuming that the 25% lump sum is for the total pot not individual providers so if i wanted could I take £210k say from the fidelity pot?

No, you assume wrong.

If you had read some of the other threads before posting another 25% lump sum question you would realise the 25% lump sum applies to individual providors.

So you take £55k tax free from the Fidelity pension, the rest is taxable. £25k from the Aviva pension with the rest taxable and so on.

Marcon

Asghar wrote: »

No, you assume wrong.

If you had read some of the other threads before posting another 25% lump sum question you would realise the 25% lump sum applies to individual providors.

How dare someone post a question which has been asked before(!).

OP, if you read post 8 on this thread: https://forums.moneysavingexpert.com/discussion/5884160/tax-free-cash
you'll see a helpful explanation as to why something permitted by legislation (and is what you assumed) isn't available for practical reasons.

atush

People can post another question if they are too lazy to read- sure.

Paul_Herring

green.lander wrote: »

I am right in assuming that the 25% lump sum is for the total pot not individual providers so if i wanted could I take £210k say from the fidelity pot?

Theoretically, yes - legislation allows it. However in practice, you're unlikely to be able to do so, since it would involve getting all those companies talking to each other, and that's parlous at the best of times - and I'm fairly certain none of them would accept instructions along those lines.

You're likely to be stuck trying to get 25% out of each pot separately. Alternatively combine them all under one provider and do it that way instead.

and if i do this am i still able to contribute to my current employee scheme up to normal annual allowance?

If, and only if, you restrict your withdrawal to 25%. 1 penny over and you'll be restricted to the MPAA allowance.