Taking the 25% out of pension and choosing the fund it comes from

222Johnny222

Hopefully a quick question 
I were to have £100,000 in a safer SW fund and £100,000 in a more adventurous SW fund (under the same plan) and wanted to take 25% at 55 can i chose where the 25% comes from?
i.e. can I take it all from the safe fund (50% of this one) there by leaving the other one untouched or do i have to take 25% from each?

QrizB

I think that depends on the pension provider.

If your provider won't do it that way, you can always rebalance after taking the 25% and put the split back to where you want it.

LHW99

QrizB said:

I think that depends on the pension provider.

If your provider won't do it that way, you can always rebalance after taking the 25% and put the split back to where you want it.

Or transfer to a pension scheme (maybe with the same provider) that will allow it - some older schemes are less flexible than newer ones, so enquiring with SW may be a good first step.

DavidT67

The tax free cash component needs to be available as uninvested cash.  So it's for you to decide which investments to sell to make that available beforehand.  At least that's the way it works on most platforms.

dunstonh

222Johnny222 said:

Hopefully a quick question 
I were to have £100,000 in a safer SW fund and £100,000 in a more adventurous SW fund (under the same plan) and wanted to take 25% at 55 can i chose where the 25% comes from?
i.e. can I take it all from the safe fund (50% of this one) there by leaving the other one untouched or do i have to take 25% from each?

SW have many types of pensions.   Their modern options are platform based have a cash account and you would sell the fund you want to get rid off to cash and they will use the cash to pay the draw.

The old contracts are not platform-based and don't have cash accounts, and you would either draw proportionally or select a fund depending on the type of pension.

in other words, you will need to ask SW.  However, if proportionate is the only option, then you can always do a fund switch afterwards.

DRS1

I have an old SW policy (an RAC which predates the personal pension schemes).  I am in the process of taking an annuity from the RAC with a TFLS.  Some months ago I switched the investments and put enough in a cash fund to cover the TFLS.  But now speaking to SW I am told that the TFLS will be taken from the investments pro rata and I can't have them take all the TFLS from the cash fund.

The moral is ask SW now what they will allow for your policy.  Yours may be more modern and flexible than mine but don't just assume that you can plonk a bit in cash (or your safer fund) and use that for the TFLS.