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TFLS Question
Durban
Posts: 485 Forumite
If the 25% TFLS was taken at 55, does that pension then have to go to a drawdown account?
If you have no intention of taking anything other than the TFLS and want to carry on paying into the pension , do you then pay into a new pension? The reason I am asking this is surely the new money that you pay in must attract a new 25 % tax free sum that you can also take?
Many thanks
If you have no intention of taking anything other than the TFLS and want to carry on paying into the pension , do you then pay into a new pension? The reason I am asking this is surely the new money that you pay in must attract a new 25 % tax free sum that you can also take?
Many thanks
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Comments
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My experience is that your pension provider starts a second 'drawdown' account with the existing pension funds (less the 25% TFLS paid out) in it, and any new contributions start to build up the original (now empty) fund again.0
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Yes, or you could just open a new pension elsewhere if you want to spread your eggs.0
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When you take TFLS, 3 times that amount is then allocated to a drawdown account. Pension providers may also refer to this as crystallised funds.
Any new contributions you pay go into uncrystallised funds. Pension providers can keep the two elements separate.0 -
....but do be aware that most legacy schemes and many workplace schemes do not allow drawdown. So, you may need to move the pension into a scheme that does.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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p00hsticks wrote: »My experience is that your pension provider starts a second 'drawdown' account with the existing pension funds (less the 25% TFLS paid out) in it, and any new contributions start to build up the original (now empty) fund again.
Same with me (with Hargreaves Lansdown. )0
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