Cash in 1 pension

Options
johno63
johno63 Posts: 1 Newbie
in Pensions, annuities & retirement planning
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.

Comments

  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
    Name Dropper First Anniversary First Post Photogenic
    Options
    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.
    It is 25% of each pension, though some pensions may offer more than 25% for historic reasons.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    Options
    25% each pension. 25% of the £15K will be tax free, the rest will be taxable at your marginal (highest) rate. 
  • xylophone
    xylophone Posts: 44,427 Forumite
    Name Dropper First Anniversary First Post
    Options
    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
  • dunstonh
    dunstonh Posts: 116,385 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    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.
  • AlanP_2
    AlanP_2 Posts: 3,253 Forumite
    Name Dropper First Anniversary First Post
    edited 27 May 2020 at 12:22PM
    Options
    You haven't mentioned your age, are you over 55?
  • Albermarle
    Albermarle Posts: 22,179 Forumite
    First Anniversary First Post Name Dropper
    Options
    Have you considered consolidating the number of pensions ?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Options
    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.
    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 ?
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards