Quick query

vixen1500

My pension statement shows a transfer value, is this the same figure as the surrender value?

It is with Scottish widows and i was thinking about withdrawing my tax free portion 25% and then doing the same in the new tax year

Thanks in advance

Dox

I'm assuming this is a defined contribution pension? Are you sure it offers the flexibility you are looking for? Also not sure you've understood that once you've taken your 25% tax free, you can't then take 25% of the balance remaining (i.e. the 75% 'left behind').

Vespaboy

I was Scottish widdows and transferred to a SIPP as it did not allow for drawdown so I would check your policy with SW so that you are able to do what you want to do You also have one 25% only ( nice if it was 4 lots of 25%

vixen1500

Opps!

No idea what a defined contribution pension is.

Just paid in through work.

Looked on Scottish Widows site and it seemed that you could do drawdowns, obviously then this is not available on all pensions.

I had assumed the option was available to all.

I did realise it was only one 25%,

Was thinking i could then withdraw again in the following years and not pay tax on the withdrawal as long as it kept my total income below the personal tax allowance of £11000 ish. (Would it be possible to do this + the 25%?)

Just starting to look into this, and have absolutely no idea what I can or can't do.

Will contact Scottish widows and see what sort of pension I have

AnotherJoe

Dox wrote: »

I'm assuming this is a defined contribution pension? Are you sure it offers the flexibility you are looking for? Also not sure you've understood that once you've taken your 25% tax free, you can't then take 25% of the balance remaining (i.e. the 75% 'left behind').

Of course you can! You may have to pay tax on it, depending what your other income is.
I took the 25% tax free, and subsequently have been taking more, but under the personal allowance and not paying tax on that because it's under the PA and I have no other income.

vixen1500

AnotherJoe wrote: »

Of course you can! You may have to pay tax on it, depending what your other income is.
I took the 25% tax free, and subsequently have been taking more, but under the personal allowance and not paying tax on that because it's under the PA and I have no other income.

This is exactly what I had in mind. :j

Now need to get intouch with Scottish widows and see if

1. I can do it with my sort of pension. I hadn't realised that you could only drawdown on certain pensions, I had assumed it was available to all.

2. as I originally asked would the value of the pension then be different from the transfer value they quoted on my last pension statement

3. do they charge fees for each withdrawal.

Many thanks for your help, i didn't want to contact them without first checking if it was possible to do

Prism

Unless you immediately need the money withdrawing your pension that quickly is probably not the best thing you can do with it if you want it to last through retirement. Have you got a formal plan of how to make it last?

AnotherJoe

vixen1500 wrote: »

This is exactly what I had in mind. :j

Now need to get i ntouch with Scottish widows and see if

1. I can do it with my sort of pension. I hadn't realised that you could only drawdown on certain pensions, I had assumed it was available to all.

2. as I originally asked would the value of the pension then be different from the transfer value they quoted on my last pension statement

3. do they charge fees for each withdrawal.

Many thanks for your help, i didn't want to contact them without first checking if it was possible to do

There are two types of pension (roughly) DB and DC. With DC you build up a pot and then take it out again as your pension, or buy an annuity with it, or both.

Although the regulations allow you to take money out gradually from a DC, not all DC pension companies or schemes allow this, basically just for administrative reasons. Same as, you can save money into a savings account but some will allow you to take money out whenever, others might only allow so many withdrawals a year etc.
If your scheme doesn't allow you to take it out (aka drawdown) when and as you want, you move it to one that does. There should be no or little fee to move it as long as you have a simple DC pension (again, with all these things, there are complexities, maybe you have a DC pension with added rules)

AnotherJoe

Vespaboy wrote: »

I was Scottish widows and transferred to a SIPP as it did not allow for drawdown so I would check your policy with SW so that you are able to do what you want to do You also have one definite tax-free 25% only ( nice if it was 4 lots of 25%

Fixed your omission.