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Tax free lump sum, but not retiring - questions...

Kevincambsuk · 2021-01-26 10:54:27

Hello all,I have 3 pensions, 2 DB and 1 DC, the 2 DB are closed. I am still contributing to the DC along with my employer. Now the question I have is as follows; I wish to take the 25% tax free lump sum at 55 out of just one of these ( the two DB is from the same employer and does provide this facility).My confusion arises…

Comments

pensionpawn Posts: 1,062 Forumite

2 February 2021 at 1:01AM

BuildTheWall said:

Does that mean someone who is 55 can withdraw 40k every year while salary sacrificing it at same time, until he retires, as long as he doesn’t cross 25% of the pot?

You would have to crystallise £160k each time to take a £40k / 25% TFLS. However you if you decide to considerably increase your SS you could fall fowl of the recycling rules.

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