Withdrawing a pension at 55

eskbanker

MrEnigma said:

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

https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/what-is-flexible-retirement-income-pension-drawdown

ColdIron

MrEnigma said:

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?

Anything where you take taxable income, even £1, from your pension triggers the MPAA

So UFPLS will, and so will drawing down from a crystallised or drawdown pot

Simply crystallising your pot to move it into drawdown but critically not taking any income from it will not

You can take the PCLS at that point without triggering the MPAA

Triumph13

MrEnigma said:

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

As long as your pension provider allows for flexible drawdown (or you transfer to one who does) the action of crystallising your pension by taking the TFLS and putting the rest into drawdown is completely separate from actually taking any income from those drawdown funds.  When I turned 55 I crystallised most of my DC funds to minimise LTA issues, taking the 25% TFLS, but didn't actually take any income until several months later.  Until then, the drawdown funds just sit sheltered in your pension.

eastcorkram

FIREDreamer said:

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. 😀

You mean it's strange that WTW asked me if I'd spoken to pension wise? Or strange that I had an appointment with them?

I have DB and DC pensions, so just thought I'd do the session anyway , as I knew I'd get asked about it later. Just seemed easier . As you say, I didn't really learn anything, and still don't understand the best way to access the SIPPs ! 

FIREDreamer

eastcorkram said:

FIREDreamer said:

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. 😀

You mean it's strange that WTW asked me if I'd spoken to pension wise? Or strange that I had an appointment with them?

I have DB and DC pensions, so just thought I'd do the session anyway , as I knew I'd get asked about it later. Just seemed easier . As you say, I didn't really learn anything, and still don't understand the best way to access the SIPPs ! 

Strange that WTW asked you about Pensionwise as irrelevant to a DB, unless they (WTW) knew about the DC pensions (but that is none of WTWs business anyway).