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Pension maturity
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ThePirates
Posts: 332 Forumite
My wife had a small pension fund which matures in July when she turns 55.
She doesn't work. The pot is £13k.
Can she access the whole amount tax free or will she have to pay tax on 75% of it?
Any help appreciated!
She doesn't work. The pot is £13k.
Can she access the whole amount tax free or will she have to pay tax on 75% of it?
Any help appreciated!
0
Comments
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Depends on what other income she has for the Financial Year 2025-26
25% will be tax free - the other 75% will depend on the above - if she has no other income then she can use her tax free allowance - but may have to reclaim back from HMRC.1 -
It is unlikely it will mature when she is 55.
I think you meant at 55 she can withdraw from it if she wants to, which is not quite the same thing.1 -
Not working so no other income.DE_612183 said:Depends on what other income she has for the Financial Year 2025-26
25% will be tax free - the other 75% will depend on the above - if she has no other income then she can use her tax free allowance - but may have to reclaim back from HMRC.
Thanks0 -
If taking it all in one year puts it into paying tax territory then she should look at taking it over 2 years.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Check your state pension on: Check your State Pension forecast - GOV.UK
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