Rule wrt TFLS and continuing to invest.

pensionpawn

I'm aware that you can take your 100% of your 25% TFLS from 55 without triggering draw down and continue to invest (up to £32k pa?). However what then happens to the money that you continue to invest after taking all of your TFLS? Does it continue to build a TFLS again or has the 25% element been used up and all future investments can only be used for draw down?

Thanks in advance.

Linton

Effectively you would have two separate pots. New money would go into a new pot from which you could subsequently take a second TFLS.

Paul_Herring

up to £32k pa?

£40K, gross, subject to usual constraints.

Does it continue to build a TFLS again

Yes, but only on the new money added.

pensionpawn

That's good. At that stage of life I'll have more spare salary than I've ever had since buying my first house at 23 (same year I started my first pension pot) and will build up the reserves again. Unless I've miscalculated it seems a no brainer after 55 to dump all spare into the pension as besides a huge market crash you receive a min of 20% uplift (plus better than cash savings growth, hopefully) with almost instant access to tax free money (subject to 25% of pot and personal tax allowance). Something to look forward to in a few years.