Combined Pension Pots and 25% tax free option?

jazzy

I have two private pensions with relatively small pension pots, one £26K and the other £11K. Because I am due to retire next year the both pension companies have been in touch with me with what options are available. I was hoping to take a 25% tax free payment from both pension pots. Unfortunately the larger pension pot is with a works pension and they have restrictions on what amount can be removed from the pension pot tax free which is around £3K, this company does offer better monthly payments compared to an annuity type policy and I would prefer not to withdraw any of the money from this company.

My question is regarding the 25% tax free withdrawals from pension pots, are pension pot values combined (with different companies) when calculating the 25% tax free option?

molerat

No, the 25% is from each separate pot. A bit confused as to exactly what type of scheme the larger one is, are you sure it is a DC pot and not a DB transfer value ?

AnotherJoe

As Molerat indicates, its from each, individually, so you cannot do what i presume was your cunning plan, add up 26 and 11 to 37, and then take 1/4 of that from the 11k one (Pretty much clearing it out).

xylophone

was hoping to take a 25% tax free payment from both pension pots. Unfortunately the larger pension pot is with a works pension and they have restrictions on what amount can be removed from the pension pot tax free which is around £3K,

What kind of pension is this?