Retirement planning

sheslookinhot

I have a small SIPP which I will use until I draw my DB pension. When I take my 25% TFLS sum in March next year will it be transferred to my account without tax being deducted?

elouise01582

Presently pension commencement lump sums (PCLS) are tax-free so the answer is yes.  The question you should be asking is what you will do with the remaining pension funds when you take this.

sheslookinhot

elouise01582 said:

Presently pension commencement lump sums (PCLS) are tax-free so the answer is yes.  The question you should be asking is what you will do with the remaining pension funds when you take this.

I will drawdown £1047 per month from April 22 until March 23 when I will commence by DB pension. Will retire April 22 and leave pension to get another 9% late retirement factor.

Not sure about the rest, maybe continue to draw until SP starts.

elouise01582

Excellent - Just make sure that your existing plan supports Drawdown and you're good to go.

Albermarle

Bobinyorkshire said:

And a financial year is April to April presumably? So in this case I could add next years lump sum after April 2022

If possible it is usually best to avoid making transactions around the end/start of the tax year . For the simple reason that many others will be doing the same , often at the last minute. So the platforms /providers involved are extra busy.
Probably making a lump sum pension payment online will be OK but if you should need customer service contact , then best to wait until a quieter time if possible.