Cash in pension up to basic rate limit

Stevepd

Hi all. Bear with me as my thinking may be bizarre or actually alright .

I took out of my pension pot earlier this year the 25% tax free amount.

I receive a military pension of XXX amount per year. When we enter the new tax year, is it reasonable I could calculate how much to withdraw from my private pension pot, that would keep me within the basic tax bracket without going into the higher rate?. Doing it again the following year to scoop up the remaining.

Or just request to remove the lot and take the hit in one go.

I appreciate tax is to be paid but can I be savvy about it.

Thank you for reading and any advice given.

xylophone

Assuming the pension provider facilitates flexibility, you can withdraw just enough each year to ensure that you stay within the basic rate band (after taking account of your other income).

Albermarle

Yes you can do that and normally is much better than taking it all out in one go. 
Possibly if it is a very old scheme that might cause a problem.
Have you had a look at their website ( assuming they have one) or asked them directly?

Stevepd

Albermarle said:

Yes you can do that and normally is much better than taking it all out in one go. 
Possibly if it is a very old scheme that might cause a problem.
Have you had a look at their website ( assuming they have one) or asked them directly?

Nope. This was me dangerously brain storming this afternoon. It's a Standard life policy and this is now  tomorrow's job.

DRS1

Watch out for any increase to the military pension during the year unless they do it on 5 April.
Don't forget that it is all your other income you need to include so if you have some savings outside an ISA which pay interest include that as well

Stevepd

DRS1 said:

Watch out for any increase to the military pension during the year unless they do it on 5 April.
Don't forget that it is all your other income you need to include so if you have some savings outside an ISA which pay interest include that as well

Thanks for that. All my/our savings are within an ISA. I'm actually unaware of when My pension increase will be during the year. I started to receive my full pension in June 24 and my exit date was the 25th Nov (some 14 years ago). So another first when it happens.

DRS1

Well June would be an obvious time for the increase but you never know they may do it on the same day each year for all pensioners.  The information is probably buried somewhere in all the paperwork they sent you when the pension started.

Stevepd

DRS1 said:

Well June would be an obvious time for the increase but you never know they may do it on the same day each year for all pensioners.  The information is probably buried somewhere in all the paperwork they sent you when the pension started.

I've subsequently found out that the first year in receipt of the full pension is done a 12 month sliding scale, depending when you start to receive the full pension (55th birthday). Thereafter from the second year it's applied every April. Would make sense for administrative workload. Today's lesson already!.