25% Lump sum - MPAA

oliel

Today I have spoken to Nest,  They have said that I cannot take 25% of my pension as a tax free lump sum it would be more of a case of whatever I take 25% will be tax free the rest will be subject to tax.     They said that if I transfer my pension elsewhere (so I can take the 25% tax free lump sum) that I would have to transfer the whole amount of my pension and close my Nest pension.  I asked if I did that If I could rejoin Nest and they said I would have to speak to my employer.   Im pretty sure my employer would let me rejoin but Im wondering if there would be restrictions on this?

MallyGirl

oliel said:

Today I have spoken to Nest,  They have said that I cannot take 25% of my pension as a tax free lump sum it would be more of a case of whatever I take 25% will be tax free the rest will be subject to tax.     They said that if I transfer my pension elsewhere (so I can take the 25% tax free lump sum) that I would have to transfer the whole amount of my pension and close my Nest pension.  I asked if I did that If I could rejoin Nest and they said I would have to speak to my employer.   Im pretty sure my employer would let me rejoin but Im wondering if there would be restrictions on this?

There may be a delay before you can rejoin - 3 months or whenever the next annual opt in happens. During this time you lose out on employer contributions.

oliel

MallyGirl said:

oliel said:

Today I have spoken to Nest,  They have said that I cannot take 25% of my pension as a tax free lump sum it would be more of a case of whatever I take 25% will be tax free the rest will be subject to tax.     They said that if I transfer my pension elsewhere (so I can take the 25% tax free lump sum) that I would have to transfer the whole amount of my pension and close my Nest pension.  I asked if I did that If I could rejoin Nest and they said I would have to speak to my employer.   Im pretty sure my employer would let me rejoin but Im wondering if there would be restrictions on this?

There may be a delay before you can rejoin - 3 months or whenever the next annual opt in happens. During this time you lose out on employer contributions.

Thanks Ill speak to my employer nearer the time and see if I can get the timing right.

Marcon

oliel said:

MallyGirl said:

oliel said:

Today I have spoken to Nest,  They have said that I cannot take 25% of my pension as a tax free lump sum it would be more of a case of whatever I take 25% will be tax free the rest will be subject to tax.     They said that if I transfer my pension elsewhere (so I can take the 25% tax free lump sum) that I would have to transfer the whole amount of my pension and close my Nest pension.  I asked if I did that If I could rejoin Nest and they said I would have to speak to my employer.   Im pretty sure my employer would let me rejoin but Im wondering if there would be restrictions on this?

There may be a delay before you can rejoin - 3 months or whenever the next annual opt in happens. During this time you lose out on employer contributions.

Thanks Ill speak to my employer nearer the time and see if I can get the timing right.

If by closing your NEST account to transfer it you are treated as 'opting out', the employer need not re-enrol you for up to 12 months, so you could lose out on a year's employer contributions. 

Albermarle

We see posts on here complaining about how long it can take to transfer out of NEST, so maybe take that into account as well.