If I take my 25% tax free from current work pension can I carry on with the pension as normal 13 February at 2:52PM in Pensions, annuities & retirement planning 3 replies 393 views

123Lottie

Hi

Could I as some advice please.

I’m 55 and still working.

i have a DB pension from old job of £150k that I now know I can’t touch as it isn’t worth enough yet to pay for an annuity which covers the specified guaranteed amount.

i have a very small pension from my current job which is only 7500. I’ve literally just transferred 2500 into it from an old now pension so it totals 10k.

I would like to take that 2500 tax free.

if I do that can I just carry on with this current pension.

also if I do that, will this definitely not affect my DB pension. I’m hoping it might grow enough in a few years to get the required annuity and possibly have a tax free amount available?

Thank you for reading 

dunstonh

i have a DB pension from old job of £150k that I now know I can’t touch as it isn’t worth enough yet to pay for an annuity which covers the specified guaranteed amount.

DB pensions don't buy an annuity.  They provide a scheme pension that is based on defined calculations.   They dont need to cover a guaranteed amount.

I would like to take that 2500 tax free.
if I do that can I just carry on with this current pension.

Have you checked to see if your current pension supports income drawdown?   (many workplace pensions do not, or if they do, they have a higher minimum value requirement).

xylophone

DB pensions don't buy an annuity.  They provide a scheme pension that is based on defined calculations.   They dont need to cover a guaranteed amount.

Does the OP mean that she is not permitted to take her scheme pension early because of a GMP requirement? See

https://hscpensions.hscni.net/download/Guaranteed-Minimum-Pension-Employee-FAQs.pdf

https://techzone.abrdn.com/public/pensions/Tech-guide-guaranteed-min-pen

123Lottie

dunstonh said:

i have a DB pension from old job of £150k that I now know I can’t touch as it isn’t worth enough yet to pay for an annuity which covers the specified guaranteed amount.

DB pensions don't buy an annuity.  They provide a scheme pension that is based on defined calculations.   They dont need to cover a guaranteed amount.

I would like to take that 2500 tax free.
if I do that can I just carry on with this current pension.

Have you checked to see if your current pension supports income drawdown?   (many workplace pensions do not, or if they do, they have a higher minimum value requirement).

Hi. My DB was contracted out  pre 2000 so there is a GMP aspect to it. When I enquired about taking it at 55 they said they had gone to insurers to see if they could purchase an annuity to cover that amount and the pot wasn’t big enough yet.

on the website for my current DC pension it does have a section on taking 25% tax free. I was just wondering if any one here knew about me being able to carry on as normal once I’d taken it. I’ll get in touch with them 

thank you