Stupid question alert

SWB

I will find out more when I go back to work next week, thanks, I really appreciate your help 

[Deleted User]

Also check with your employer if there are any restrictions on their contributions after you have taken any money
My old employer stopped paying their contributions if you took anything whilst still employed

SWB

It is def a Defined Pension.
I can start to draw from it at aged 55 but it looks like I then have to transfer the rest into a DC pension: 
You can normally choose to give up some of your pension for a single lump sum payment. This lump sum is normally tax-free and current legislation allows you to give up a maximum of about 25% of your pension for a lump sum. Current legislation allows members in defined contribution arrangements more options at retirement. You can only take advantage of these additional options by transferring your benefits out of the Pension Fund. .There is also a ‘flexible option’ which looks like I can withdraw some of my pension as a ‘one-off’.

Flexible retirement is when you decide to draw some or all of your pension whilst continuing to work for ABC. The earliest you can flexibly retire is still age 55. In addition, the following rules apply:

• Flexible retirement is only available to active members of ABC Pension Fund who will continue in employment with ABC after drawdown has commenced.
• The earliest age at which drawdown can be taken is 55.
• The maximum number of times that you can drawdown your pension is five. Your final drawdown at retirement will be used to provide your remaining pension entitlement.
• The amount of pension drawn down must be at least £1,000 a year prior to giving up part of your pension for a tax free cash lump sum.
• You will be able to exchange part of your pension for a tax free cash lump sum on each drawdown.
• Once flexible retirement has been chosen and a drawdown pension is in payment, it is not possible to reverse your decision.

I am not as keen to withdraw 25% to clear my mortgage now, thanks for your advice. I need to understand what the second part about the draw downs mean though.
If I continue to work for another 5 years, ABC will allow me to retire on my full pension and I will be mortgage free by then anyway.
The old DB scheme finishes this year and is being replaced by a DC scheme which is not as good so I will need to figure that into any drawdowns.
Thanks for making the muddy waters a little clearer, really appreciated. 

Dazed_and_C0nfused

That is talking about a transfer from a DB pension to a DC pension.

You would have to take advice from a specialist IFA before being able to do that and what it basically means is you would be agreeing to give up a guaranteed, probably inflation proofed, pension of £x/year for a lump sum that goes into a DC pension fund.

You have more flexibility about taking income from a DC pension but if it is invested then it is subject to the ups and downs of the stock market.

Definitely not something to even be thinking about without a very good understanding of what is involved.  It is a very costly exercise as well, could easily be into five figures.

Albermarle

Five good reasons to transfer out of your company pension....and five good reasons not to - Royal London

SWB

My company are closing the DB pension and are moving to DC. Could I get my 10k bonus paid into the new DC and withdraw it all tax free? I don’t think I will withdraw anything from the DB if I have to then convert it from a DB. I don’t want to pay 40% tax on my bonus if I can put it into my new DC and then withdraw it as part of my 25% allowance? 
Thanks 

Dazed_and_C0nfused

What do you envisage your total DC pot would be at the moment you wanted to withdraw the £10k?

SWB

It would be £10k, it’s brand new as my work is closing my main DB pension. Thanks 

Dazed_and_C0nfused

Then you could only take £2.5k as a TFLS (25%).

Anything else taken would be taxable income and taking anything more than the TFLS would also mean you could only contribute a maximum of £4,000 (gross) a year from then on.

I'm not sure you have understood the difference between DB and DC schemes and how each one works.

Maybe best to do a bit more reading?

https://www.which.co.uk/money/pensions-and-retirement/company-pensions/defined-benefit-and-final-salary-pensions-ajvnw4q07rlm

https://www.which.co.uk/money/pensions-and-retirement/company-pensions/defined-contribution-and-money-purchase-schemes-afwxr8w31qq3

ussdave

If it's a 10K (and literally not a penny more, unless you split it) pot then couldn't it be taken under small pot rules, giving £8500 after tax and not triggering MPAA?