Taking TFLS from NEST Pension

crv1963

I apologise if this has been asked previously but I have searched for a similar thread but cannot find one.

I have a NEST Pension pot with12.5k in it. It is not my main pension. I no longer contribute to the NEST Pension. I tried to take the 25% TFLS (3k) on line but the website automatically went to give me £750 tax free (25% of 3k) and the balance £2250 taxed at 20%. Whilst this is one way of accessing pension funds I thought I would have an option to take the TFLS from the fund then just leave the remaining 9k until I wanted to draw it down.

So I telephoned NEST and the call adviser told me that I cannot take 25% TFLS from the NEST Pension and all payments from NEST are made up of the split 25% Tax free and 75% taxed. 

I told her that I thought I could simply withdraw the TFLS but she told me I would need to contact HMRC and sort it with them. 

Questions- 1) Is it possible to take 25% TFLS from NEST and not draw anymore money?
2) If I follow the way I am told to surely that will trigger limits on future contributions to pension savings such as my SIPP?
3) Is it possible to take the money then ring HMRC and explain that I only wanted the 25% tax free lump sum and get a tax rebate on the part NEST has said is income?

NoMore

Sounds like Nest don't offer Flexi Access Drawdown only UFPLS, you will need to transfer to another provider that does offer FAD, if you want to do this.

crv1963

NoMore said:

Sounds like Nest don't offer Flexi Access Drawdown only UFPLS, you will need to transfer to another provider that does offer FAD, if you want to do this.

Thank you for this I will see if I can move the money to my SIPP and take the TFLS that way.

crv1963

After several hours - well 5 to be exact I have set the ball rolling to bring my NEST Pension and an AVC I have into my SIPP and then from there I will take the 25% TFLS and leave it awaiting drawdown at a later date if it is needed. This crystalised pension  pot will then (under current rules) sit outside my estate and be passed onto my wife or sons depending who goes first myself or my wife.

Albermarle

NoMore said:

Sounds like Nest don't offer Flexi Access Drawdown only UFPLS, you will need to transfer to another provider that does offer FAD, if you want to do this.

Quite a negative mark against using Nest.