LTA maxed out, what to do with remaining uncrystallised funds ?

Marnico

Hi, I have several pensions and have used all my LTA in releasing TF cash and taking a regular drawdown from my Pru retirement account, however I still have £80+k uncrystallised sitting in a separate Pru account. I don't particularly need it right now but are there any options other than either leaving it there indefinitely or taking the 55% tax hit by withdrawing it as a lump sum ?

phlebas192

Marnico said:

Hi, I have several pensions and have used all my LTA in releasing TF cash and taking a regular drawdown from my Pru retirement account, however I still have £80+k uncrystallised sitting in a separate Pru account. I don't particularly need it right now but are there any options other than either leaving it there indefinitely or taking the 55% tax hit by withdrawing it as a lump sum ?

The LTA has been abolished. If you previously crystallised amounts up to the LTA limit then you can't take any further tax-free lump sum, but you can otherwise access the pension like any other - ie withdrawals will be taxed at your marginal income tax rate.

Marcon

Helpful reading: https://techzone.abrdn.com/public/pensions/Technical-Guide-Pensions-UFPLS