Are new payments into a pension that has already been crystallised uncrystallised?

SVaz

My understanding is,  however much your crystallised pot grows, you can’t take another chunk of tax free cash, even if it doubles or triples you only get one bite, as it were 

Albermarle

SVaz said:

My understanding is,  however much your crystallised pot grows, you can’t take another chunk of tax free cash, even if it doubles or triples you only get one bite, as it were 

Yes, you can only take tax free cash by crystallising uncrystallised funds.

dealyboy

@QrizB said:

Steve_666_ said:

That is how I read the II information. So does anyone know whether a crystallised amount stays at exactly that amount and any growth is regarded as uncrystallised, or the percentage of the pot crystallised remains the same.

If your crystallised funds grow, the growth is also part of your crystallised funds.

... if your crystallized funds grow due to price increases then the the total value of the SIPP grows. Both the value of the uncrystallized and crystallized parts of the SIPP, including cash, increase proportionately*.

* Edit: ... for platforms maintaining a SIPP split percentage.

Sea_Shell

Aviva have distinct separate pots for each.  New money or transfers in** go into the uncrystallised pot.

AIUI, each time you take 25% tax free cash, the 75% gets moved to crystallised.

Eg, to take £2500 tax free, you need £10000, they then move £7500 across.   This can then remain as cash or invested, as you see fit.

If you take all your 25% up front, then all your remaining funds are in the crystallised pot and subject to income tax when/if withdrawn.

If your pot then grows*...you don't get any more tax free cash...but it will last longer😉

*Or the opposite could happen 😲


We've literally just done this with DHs transfer in of his Aegon pension.  All very slick.


** assuming they haven't already been crystallised before transfer.

Doctor_Who

SVaz said:

My understanding is,  however much your crystallised pot grows, you can’t take another chunk of tax free cash, even if it doubles or triples you only get one bite, as it were 

This is one reason I'm using yearly UFPLS withdrawals. Hopefully the uncrystallised pot will grow and mean more tax-free cash is available later (obviously the pot could shrink and less tax-free cash would be available).

dealyboy

dealyboy said:

@QrizB said:

Steve_666_ said:

That is how I read the II information. So does anyone know whether a crystallised amount stays at exactly that amount and any growth is regarded as uncrystallised, or the percentage of the pot crystallised remains the same.

If your crystallised funds grow, the growth is also part of your crystallised funds.

... if your crystallized funds grow due to price increases then the the total value of the SIPP grows. Both the value of the uncrystallized and crystallized parts of the SIPP, including cash, increase proportionately*.

* Edit: ... for platforms maintaining a SIPP split percentage.

Note for clarity ... in this case of investment gains the total value of any cash in the SIPP remains the same (you don't gain cash), but of the cash, if it's partially crystallized (e.g. due to past PCLS), more will be in the uncrystallized part for access.