I have 4 pensions - can I take the equivalent of the 25% tax free overall amount from 2 or 3 of them

country_living_fam

I have four pensions, one of which is a DB scheme which I’m unable to transfer. Therefore, I would like to know if I could take all of two or three of my pensions (one being the DB scheme) as the 25% tax free of the total amount in the four pensions rather than 25% of each of them?

artyboy

No, it will be 25% proportionately from each of them (and for the DB one it will be whatever the scheme allows, given there's no actual 'pot' of money to calculate 25% from)

LHW99

You could transfer the three into one place (two into the other, or all into a new one), and take a single 25% of that total.

Gives the same result as taking from each separately, but MAY

a) mean you can choose to amalgamate in a pension with lower charges (if it offers what you want for the remaining 75%

b) be necessary if one or more of the existing DC pensions only allows the TFLS if you take an annuity with the rest (there are still a few old ones out there like that).

You would have to watch that none of them have any special benefits like a guaranteed annuity rate, which may mean you have to have advice to move it.

Marcon

artyboy said:

No, it will be 25% proportionately from each of them (and for the DB one it will be whatever the scheme allows, given there's no actual 'pot' of money to calculate 25% from)

...although many schemes (eg the NHS) refer to 25% tax free cash, based on the capital value of the DB pension.

p00hsticks

artyboy said:

for the DB one it will be whatever the scheme allows,

also, whatever tax free 'Pension Commencement Lump Sum' the DB pension offers will, as the name suggests, be contingenct on the pension beinf put into payment at the same time, which may not be what the OP wants. 

Albermarle

p00hsticks said:

artyboy said:

for the DB one it will be whatever the scheme allows,

also, whatever tax free 'Pension Commencement Lump Sum' the DB pension offers will, as the name suggests, be contingenct on the pension beinf put into payment at the same time, which may not be what the OP wants. 

Also depending on the DB scheme, there will most likely be an option not to take the PCLS and have a bigger pension income instead. 

Albermarle

You could transfer the three into one place (two into the other, or all into a new one), and take a single 25% of that total.

Also if you are going to consolidate DC pensions, it is easier to do it before taking any tax free cash.
Having one DC pension is also easier when you start to take taxable income. Less problems with HMRC than if you take taxable income from multiple sources.