Sense Check Please!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81862025#Comment_81862025

The usual method is to take out £16,760 , by taking a UFPLS payments, which is 25% tax free and 75% taxable ( the 75% = exactly the standard personal allowance ) .

However if your way suits you, then it is fine. The only thing is you will have to take two separate payments, and you will have to wait a week or two after requesting the tax free cash, before you can request the taxable payment.

In both cases you may well find the taxable payment is taxed, and you have to claim it back.

MallyGirl

https://forums.moneysavingexpert.com/discussion/comment/81862025#Comment_81862025

do you use a provider that has separate pots for crystallised and uncrystallised funds? Some of the usual suspects operate a notional split eg ii.
HL I believe does the separate pots

Stringybob3

I currently have my pension in my workplace Peoples Pension as it keeps it easy for salary sacrifice. When I retire I plan to switch to one of the "usual suspects" yet tbc.

So how does the following sound. I would need to have 3 "Pots". Pot 1 starts at £300k uncrystallised and is invested in a global fund tbc 60 or 80 or 100% equities. Pot 2 starts at £100k uncrystallised in STMM. Pot 3 is the crystallised pot which can remain untouched for the foreseeable future, so can remain in 100% equities. I would therefore balance Pots 1 & 2 every year to ensure that £100k remains in Pot 2, something like this:

Does this seem a sensible approach, do any of you do anything similar? Are there providers who can accommodate this strategy?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81867956#Comment_81867956

I do not think ( maybe wrong) that you can have multiple pension pots at the same provider. Even if you could you would not be able to keep transferring money from one to the other.

You might have to have three separate providers.

af1963

What's the purpose of "Pot 2" in the above ? How is it different from having a single uncrystallised pot containing (initially) 300k in global fund and 100k in STMM, and then just moving investments within the single pot ?

Stringybob3

The initial thinking behind it was to find a way to de-risk the £160k that I will be withdrawing over the next 10 years, whilst leaving the remaining amount in more adventurous investments, but it clearly needs a re-think!