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Cash in 1 pension
johno63
Posts: 1 Newbie
I have a few pensions with over £100k in and I wish to cash 1 of them in totally £15k ,as thisithis below 25% of my total pot would this be ok or is it up to 25% of each pension.
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Comments
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It is 25% of each pension, though some pensions may offer more than 25% for historic reasons.johno63 said:I have a few pensions with over £100k in and I wish to cash 1 of them in totally £15k ,as thisithis below 25% of my total pot would this be ok or is it up to 25% of each pension.
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25% each pension. 25% of the £15K will be tax free, the rest will be taxable at your marginal (highest) rate.0
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You might benefit from an interview with Pension Wise.
https://www.pensionwise.gov.uk/en
And do you know about the Money Purchase Annual Allowance?
https://www.moneyadviceservice.org.uk/en/articles/money-purchase-annual-allowance
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And remember that if you do this and you are still working, your annual allowance (including employer contributions) will fall to £4000.
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 -
You haven't mentioned your age, are you over 55?0
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Have you considered consolidating the number of pensions ?1
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As said it's up to 25% of each is tax free, however the bit I've bolded makes no sense. You say you wish to cash it in totally but if it's over £100k then it's more than £15k. Did you mean to put £150k ?johno63 said:I have a few pensions with over £100k in and I wish to cash 1 of them in totally £15k ,as thisithis below 25% of my total pot would this be ok or is it up to 25% of each pension.0
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