Tax free element of DC pension?

MangoPango

I have a DB pension frozen until I retire (about 3 yrs from now) which I intend to live on.
I am currently paying in to a DB pension which I’d like to use to pay off any outstanding mortgage at the time.
How do I work out the tax free element of my DB pension?

Dazed_and_C0nfused

MangoPango said:

I have a DB pension frozen until I retire (about 3 yrs from now) which I intend to live on.
I am currently paying in to a DB pension which I’d like to use to pay off any outstanding mortgage at the time.
How do I work out the tax free element of my DB pension?

It will be set by the scheme rules.

And your other DB pension in unlikely to be frozen, it will almost certainly be increasing by some inflation linked revaluation.

MangoPango

Thanks D & C.
My mistake in description.
What I meant is I’m no longer paying in to my DB. It does indeed have an annual increase. The 2 pensions are with separate companies so I’m just confused how it works when I don’t have a value for my DB. 

Dazed_and_C0nfused

This gives a bit of info but you really need to read your scheme rules to find our what will apply to you.
https://techzone.adviserzone.com/anon/public/pensions/Tech-guide-tax-free-cash#anchor_2

AlanP_2

Do you have 2 * DB pensions or 1 * DB and 1 * DC?

The thread title refers to DC yet your posts refer to DB.

green_man

For DB schemes there is no set amount you have a right to. Some schemes may have no tax free lump some options at all. Even those that do provide a lump sum option, it is sometime very poor value (you give up a lot of pension for a small lump sum).   So check with the particular scheme.  

Note - if your scheme does offer a lump sum (which is typical) don’t just jump in without working out if you would be better off without.  Maybe taking a higher monthly amount and continuing with a mortgage is a better option.

Linton

When you ask to take your DB pension you will be given options (if available from the scheme) such as £10K/year or £8K/year+£40K lump sum.

Secret2ndAccount

Did you, by any chance, pay any AVC's while you were contributing to the DB scheme?