Protected tax free lump sum

Costabit

Have started a Pension transfer of £60K from an old Standard Life workplace pension to my SIPP. But before proceeding , SL need me to confirm that i am happy to lose any entitlement to higher than 25% tax free cash as detailed in the exert below.
25% of £60k is more than what I have protected so am not sure that I lose out , or have I got this wrong ???
I was happy to consolidate all of my old workplace pensions but this has started me thinking again. Will I be loosing much by transferring ??
Any help or thoughts would be much appreciated

We have recently received a request to transfer the above plan
Due to a previous transfer in to this plan, you may be entitled to take more than the standard 25% tax free cash allowance of the fund built up before 6 April 2006 (A Day).
 The protected tax free lump sum figures are as follows: Uncrystallised Rights (£) 5670.80
Uncrystallised Lump Sum Rights (£) 2235.71
Please note that any entitlement to higher than 25% tax free cash will be lost on transfer.

dunstonh

Will I be loosing much by transferring ??

Yes or no.  The answer depends on how much the protected tax free cash entitlement is and how your personal taxation is at the time you intend to take the pension benefits.

 The protected tax free lump sum figures are as follows: Uncrystallised Rights (£) 5670.80
Uncrystallised Lump Sum Rights (£) 2235.71

So, that is 39%.

Costabit

dunstonh said:

Will I be loosing much by transferring ??

Yes or no.  The answer depends on how much the protected tax free cash entitlement is and how your personal taxation is at the time you intend to take the pension benefits.

 The protected tax free lump sum figures are as follows: Uncrystallised Rights (£) 5670.80
Uncrystallised Lump Sum Rights (£) 2235.71

So, that is 39%.

Ah , its clearer now
My personal allowance will be used up through other pensions , so everything over the TFLS will be at basic rate.
But as 39% is about £800 better than 25% I am leaning towards staying put with SL as £800 beats all the charges and the default SL fund is not the worst performing fund.
More research and thinking needed but thanks for your clarification dunstonh

Albermarle

and the default SL fund is not the worst performing fund.

Are you sure about that  , SL recently came bottom of a comparison of default funds.

Also I had a couple of middle of the road SL funds that were poor performers compared to similar multi asset funds . Especially this year as they have quite a high UK % .

Costabit

Albermarle said:

and the default SL fund is not the worst performing fund.

Are you sure about that  , SL recently came bottom of a comparison of default funds.

Also I had a couple of middle of the road SL funds that were poor performers compared to similar multi asset funds . Especially this year as they have quite a high UK % .

  Your right, this year it hasn't been great and I think I am being blinded by the thought of extra tax free money when I should be concentrating on performance above any tax benefit
Thanks

wjr4

Which funds are you invested in? 

Costabit

Its the Standard Life Passive Plus IV Pension Fund
Top holdings are
SL VANGUARD FTSE UK ALL SHARE INDEX 26.0 %
SL VANGUARD US EQUITY 15.4 %
SL VANGUARD FTSE DEVELOPED EUROPE EX UK EQUITY INDEX 8.2 %
 SL VANGUARD JAPAN STOCK INDEX 7.7 %
SL PROPERTY PENSION 7.1 %
 The rest is a variety of bond indexs

MK62

Can you not crystallize now, take the enhanced TF cash and then move it later?

Costabit

MK62 said:

Can you not crystallize now, take the enhanced TF cash and then move it later?

Did think about that, but have already taken a TFLS of £7500 from another pension and have made some significant contributions too, so dont want to fall foul of any Recycling issues 
Thanks anyway