Bridging pension taxation rules

pennine

Hi all
I'm looking to retire in a couple of years at age 55.
I will be receiving 3 pensions from final salary schemes all of which will be paying bridging pensions.
I also intend to take the full 25% in cash from all 3 schemes as I have managed to build this up with AVC contributions.
I was chatting to a colleague of mine last week who is leaving work this year and is in a similar position to me and he mentioned that the bridging pension tax will be payable in the first year as if it had been paid in one lump i.e. 12 years worth !!!
I was wondering if anyone could clarify if this is correct or is he getting confused?
He has taken some retirement advice recently and is quite financially aware so it does worry me somewhat.
Thanks

Paul_Herring

and he mentioned that the bridging pension tax will be payable in the first year as if it had been paid in one lump i.e. 12 years worth !!!

Only if the bridge part of the pension is all being paid in the same tax year, which I doubt.

Otherwise it's taxed as normal income - i.e. what you receive, when you receive it, is taxed normally taking into personal allowance etc.

pennine

Thanks for the reply, I thought it odd.
He must have his wires crossed

Paul_Herring

I'd still ask him to expound on his reasoning, and provide the documentation (if any) that's made him think this..