Pension Drawdown

FSG27

I have a defined benefits pension from a previous company (only there 2 years so the value isn't massive) and I have a very good defined contributions pension with my current company. I would like to take the tax free drawdown from both when I am 55 in 2 years' time to pay off my mortgage - however I don't want to retire from my current company until I am 65 - am I able to take both drawdowns and still pay into my current employer scheme until I retire?

Marcon

FSG27 said:

I have a defined benefits pension from a previous company (only there 2 years so the value isn't massive) and I have a very good defined contributions pension with my current company. I would like to take the tax free drawdown from both when I am 55 in 2 years' time to pay off my mortgage - however I don't want to retire from my current company until I am 65 - am I able to take both drawdowns and still pay into my current employer scheme until I retire?

You'll need to take your DB pension at the same time you take the tax free lump sum from that scheme.

You can still pay into your current scheme until you retire, provided that the rules of the scheme let you access the tax free cash without interrupting your membership. Check with your employer or pension provider what happens if you do what you would like to do.