Withdrawing a pension at 55

MrEnigma

Im looking to withdraw a pension pot that I have. After speaking to the provider, they was asking whether I had commuictaed with pensionwise. I did breifly, but never had an appointment.
I have recieved the form to withdraw 'this pot' from the provider and agin there are questions about speaking with pensionwise, and asking for reference numbers.

To the point.

Can my pension provider refuse the withdrawal if I have not had an 'appointment' with pensionwise?

TIA

dunstonh

Can my pension provider refuse the withdrawal if I have not had an 'appointment' with pensionwise?

No. . . . .

MrEnigma

Thank you.

So I just tick all the 'No' tick boxes in the guidance section of the withdrawal form. Silly question, but needs to be asked.

eastcorkram

I was asked this about pension wise, when I applied for a DB pension a couple of weeks ago. 

I did my appointment with pension wise back in April, so filled in the form accordingly. 

There was an option on the form to say you didn't wish to have such a meeting.

FIREDreamer

eastcorkram said:

I was asked this about pension wise, when I applied for a DB pension a couple of weeks ago. 

I did my appointment with pension wise back in April, so filled in the form accordingly. 

There was an option on the form to say you didn't wish to have such a meeting.

Strange - Pensionwise don’t offer any guidance for DB pensions.

I didn’t find them part useful for DC pensions either - didn’t tell me anything I didn’t know already. 😀

artyboy

MrEnigma said:

Thank you.

So I just tick all the 'No' tick boxes in the guidance section of the withdrawal form. Silly question, but needs to be asked.

If you're comfortable with and understand the implications of fully withdrawing a pension (including a potentially large tax liability and triggering the MPAA if it's not a small pot), then you're not forced to meet with them...

MrEnigma

artyboy said:

MrEnigma said:

Thank you.

So I just tick all the 'No' tick boxes in the guidance section of the withdrawal form. Silly question, but needs to be asked.

If you're comfortable with and understand the implications of fully withdrawing a pension (including a potentially large tax liability and triggering the MPAA if it's not a small pot), then you're not forced to meet with them...

The pot is not that of any significance really. I wanted to get the 25% tax free, but this triggers drawdown, and will trigger the higher tax. If I read correctly, the remaing 75% has to be taken in some way, therefore the tax is unavoidable. Unless I stop work and retire. Tax would still have to be paid.

My company pension hopefully will yeild the returns required. I Can still pay in £10k per year with the new changes which come into effect this year.

Triumph13

You can take the 25% now and not draw down any of the 75% until some point in the future, after you have retired.  That avoids triggering the MPAA and probably lets you get it out in a more tax efficient way.

Sarahspangles

MrEnigma said:

artyboy said:

MrEnigma said:

Thank you.

So I just tick all the 'No' tick boxes in the guidance section of the withdrawal form. Silly question, but needs to be asked.

If you're comfortable with and understand the implications of fully withdrawing a pension (including a potentially large tax liability and triggering the MPAA if it's not a small pot), then you're not forced to meet with them...

The pot is not that of any significance really. I wanted to get the 25% tax free, but this triggers drawdown, and will trigger the higher tax. If I read correctly, the remaing 75% has to be taken in some way, therefore the tax is unavoidable. Unless I stop work and retire. Tax would still have to be paid.

My company pension hopefully will yeild the returns required. I Can still pay in £10k per year with the new changes which come into effect this year.

If you envisage that you might have a tax year in which income from salary and pensions is below your personal allowance then that’s a good time to take the taxable element. 

MrEnigma

Sarahspangles said:

MrEnigma said:

artyboy said:

MrEnigma said:

Thank you.

So I just tick all the 'No' tick boxes in the guidance section of the withdrawal form. Silly question, but needs to be asked.

If you're comfortable with and understand the implications of fully withdrawing a pension (including a potentially large tax liability and triggering the MPAA if it's not a small pot), then you're not forced to meet with them...

The pot is not that of any significance really. I wanted to get the 25% tax free, but this triggers drawdown, and will trigger the higher tax. If I read correctly, the remaing 75% has to be taken in some way, therefore the tax is unavoidable. Unless I stop work and retire. Tax would still have to be paid.

My company pension hopefully will yeild the returns required. I Can still pay in £10k per year with the new changes which come into effect this year.

If you envisage that you might have a tax year in which income from salary and pensions is below your personal allowance then that’s a good time to take the taxable element. 

Yes indeed, but my earnings will always be hitting the higher tax bracket.
Thank you

MrEnigma

Triumph13 said:

You can take the 25% now and not draw down any of the 75% until some point in the future, after you have retired.  That avoids triggering the MPAA and probably lets you get it out in a more tax efficient way.

Interesting, as my research suggests otherwise. Could you please provide more advise on this?

Many thanks