Claiming my 25% tax free pension allowance without the balance going into drawdown

blackwaterboating

I have contacted my 3 separate private pension providers all of which have told me that if I am paid my 25% tax free amount into my bank account now that the remaining pot will go into a new account that will then be in draw down and taxed which I do not want. I was told that what I require is possible however it may require the help of a financial advisor who will charge a fee or will want 2% of my remaining pot. Please advise 

Dazed_and_C0nfused

blackwaterboating said:

I have contacted my 3 separate private pension providers all of which have told me that if I am paid my 25% tax free amount into my bank account now that the remaining pot will go into a new account that will then be in draw down and taxed which I do not want. I was told that what I require is possible however it may require the help of a financial advisor who will charge a fee or will want 2% of my remaining pot. Please advise 

You have misunderstood.

It is only taxed when you take it out of the pension.  It is not taxed if it remains in the pensions wrapper.

MeteredOut

blackwaterboating said:

I have contacted my 3 separate private pension providers all of which have told me that if I am paid my 25% tax free amount into my bank account now that the remaining pot will go into a new account that will then be in draw down and taxed which I do not want. I was told that what I require is possible however it may require the help of a financial advisor who will charge a fee or will want 2% of my remaining pot. Please advise 

It's not 100% clear what it is you require. Is it to withdraw the 25% tax free and keep the rest, ready for a future drawdown, but not start the drawdown yet? If so, there's no reason you should not be able to do that.

If not, what is it that you want?

(this is assuming these are DC pensions, not DB pensions).

Albermarle

Assuming they are defined contribution pensions, then if you take the 25% tax free, then the remaining 75% is classed as taxable income when you withdraw it ( whether it is taxed or not depends on your overall income etc) .
There is no way around that.

Marcon

blackwaterboating said:

I have contacted my 3 separate private pension providers all of which have told me that if I am paid my 25% tax free amount into my bank account now that the remaining pot will go into a new account that will then be in draw down and taxed which I do not want. I was told that what I require is possible however it may require the help of a financial advisor who will charge a fee or will want 2% of my remaining pot. Please advise 

Why is a financial advisor needed...?

TadleyBaggie

I did this at age 55, transferred a £60K pot to a provider that allowed drawdown, took the £15K TFLS and then set the drawdown to £0 per month. Left it for the next 7 years by which the pot had grown well beyond the original value.