Future Pension Contributions

Pursuit

Couldn't figure out how to phrase this query in the search so thought I would just ask.

I am still working and putting 3.5K into my pension every month. I thought I would take some TFLS from my pension next year (August) to help with a project. It turns out that with L&G, if I take any TFLS then my whole pension gets moved into drawdown and I loose the remainder of my TFLS. That leave me with the UFPLS option. But I will trigger the MPAA

I possibly could live with this as I am close to retirement but does this mean that I would need to exit from my company pension scheme as I would have already exceeded the new 10k limit for the year or does this limit only apply to future contributions after the trigger event?       

DE_612183

you could transfer your pension.

I have a similar issue coming up - I've got a pension in Nest  ( £100k ) - if I take anything it gets split 75/25 taxable / tax free - I can't just access the tax free element - I don't lose the Tax Free element but I can't take it in isolation.

I'm going to transfer it to a L&G pension - then I can take £25k tax free and leave the rest crystallised to carry on making money, but I know when I do take it, it will all be subject to tax.

TIALTNGO

I'm going through something similar with L&G.  I'll be taking the 25% tax free lump some in Sept 2025 but as I will still be working and paying into the pension with Salary Sacrifice and additional voluntary contributions,  they keep £100.00 uncrystallised from the current pot and the remainder goes into drawdown.  I don't plan to take any of the crystalised part of the pot at this stage and therefore won't trigger the MPAA. Future payments get added to the £100.00 pot which build up a tax free element again.  I suggest you speak to them regarding this and I hope his helps you,

kempiejon

Depending on how much more than £42k you need for the project you could turn the £3k6 monthly contribution off and save up, keeping everything already protected in the pension wrapper and let it grow keeping out of MPAA trouble too.
I think that tax free should be protected if at all possible others differ.
There's perhaps a plan to transfer to a provider that'll allow you to split out as small pots allowing one to bank another £30k, not trigger MPAA. I think HL and/or AJBell are two who will take transferred pensions and allow you to small pot. 

NoMore

To answer your actual question, when the MPAA is triggered it applies from that point forward not retroactively.

Albermarle

Many modern pensions, allow you you take the 25% tax free in stages, without taking any taxable income.
So L&G are being a bit inflexible/old school. Probably as their IT systems can not handle it.

Pursuit

Thanks all, I decided to phone L&G and they confirmed it is from the trigger event point forward.