Drawdown 25%

Sahara20

I am a new to pensions.  I have multiple pension pots.

If one of my DC pots is £100K.Can I take the full 25% tax free amount in one withdrawal?  I.e £25k.
Leave the rest in that pot to invest and then take out differing amounts when needed (taxable).

At a later stage  can I do the same with my other DC pots?  I.e take a 25% lump sum and leave the rest to invest.

Dazed_and_C0nfused

If you are old enough yes.

There is an upper limit now for total TFLS (~£268k)

Sahara20

Thank you. Do I need to take the 25% in two lump sums to prevent HMRC taxing it?

Dazed_and_C0nfused

Sahara20 said:

Thank you. Do I need to take the 25% in two lump sums to prevent HMRC taxing it?

A TFLS is exactly what it says on the tin.  Tax free.  The pension company won't tax it and HMRC won't either as the pension company wouldn't be telling them about it (as a source of taxable income).

dunstonh

Sahara20 said:

Thank you. Do I need to take the 25% in two lump sums to prevent HMRC taxing it?

You can take your tax free cash upfront or on drip.  not taking it up front is often the most tax efficient way.    If you are spending it all in one go then that decision is already made for you but if you are just taking it out to put in your bank account/savings, then you should reconsider as that is not effective (in most scenarios - it could be in some)

Albermarle

Sahara20 said:

I am a new to pensions.  I have multiple pension pots.

If one of my DC pots is £100K.Can I take the full 25% tax free amount in one withdrawal?  I.e £25k.
Leave the rest in that pot to invest and then take out differing amounts when needed (taxable).

At a later stage  can I do the same with my other DC pots?  I.e take a 25% lump sum and leave the rest to invest.

It can get complicated with many different pension pots, especially if you get to the stage of taking taxable income.
It would make admin easier if you consolidated them into just one or two pensions first before doing anything.
Normally this is easy to do online, but you need to decide which ones to keep, and which ones to transfer.
Things to look at are 
Charges
Newer pensions are usually better than older ones
Choice of investments

For example if you had just one big modern pension, there would be no need to take the whole 25% tax free cash at once.