Can I take another lump sum from my pension?

NoMore

dunstonh said:

beastyboy said:

leosayer said:

beastyboy said:

leosayer said:

You can only take tax free cash from an uncrystallised pension.

Your post doesn't make it clear how much if any of your pension is uncrystallised .

Currently I have one uncrystallised pension of £140k that was made from my original pension, I took the £35k from that uncrystallised pension, hence 25%.

What are the current values of your crystallised and uncrystallised pensions?

They term them as:
Pension Savings - £272,131
Pension Drawdown - £112,411

Its a pain when providers decide to rename the generic terms to some marketing term.

Savings = uncrystallised
Drawdown = crystallised.

I sort of understand why they do it, crystallised and uncrystallised are very technical terms and they are trying to make it easier for the uninitiated, however the choice of the replacement terms never seems to make it any clearer.

dunstonh

NoMore said:

dunstonh said:

beastyboy said:

leosayer said:

beastyboy said:

leosayer said:

You can only take tax free cash from an uncrystallised pension.

Your post doesn't make it clear how much if any of your pension is uncrystallised .

Currently I have one uncrystallised pension of £140k that was made from my original pension, I took the £35k from that uncrystallised pension, hence 25%.

What are the current values of your crystallised and uncrystallised pensions?

They term them as:
Pension Savings - £272,131
Pension Drawdown - £112,411

Its a pain when providers decide to rename the generic terms to some marketing term.

Savings = uncrystallised
Drawdown = crystallised.

I sort of understand why they do it, crystallised and uncrystallised are very technical terms and they are trying to make it easier for the uninitiated, however the choice of the replacement terms never seems to make it any clearer.

I agree with that reasoning. However, each provider then gives it their own name, and you end up with a load of internal names for each that differ across providers instead of just two technical names.

I mean, savings account, for the uncrystallised chunk.  That is a rather daft name for it.     However, that comes from a provider that also refers to a guaranteed basic annuity as guaranteed minimum pension, which means something completely different.

Dinghy

If you have paid money into two pensions over your lifetime  for instance one which was a defined benefit , which was closed by an employer in favour of a defined contribution plan,  , as many people may have done , my question is .  If you had already taken a tax free 25% from one and received an income from it,  is any money you take   or draw down from a second pension which exceeds your personal allowance taxed ?
I assume you would not be able to take another 25% tax free lump sum ?
Thanks

jim8888

I have absolutely no idea how anyone who takes an interest in managing their pension(s) copes with the utter confusion, uncertainty and complexity involved in trying to withdraw funds when they reach retirement. Never mind the HMRC and tax implications. And as for those who take no interest in finance -  i.e. most of the country, including my wife - I utterly fear for them and how much they'll be shelling out to IFAs and accountants to try and sort it all out. 

QrizB

Dinghy said:

If you have paid money into two pensions over your lifetime [and] had already taken a tax free 25% from one and received an income from it,  is any money you take   or draw down from a second pension which exceeds your personal allowance taxed ?
I assume you would not be able to take another 25% tax free lump sum ?

You can take 25% tax-free from a second pension, subject to the £268k total limit on tax-free cash.

jim8888 said:

I have absolutely no idea how anyone who takes an interest in managing their pension(s) copes with the utter confusion, uncertainty and complexity involved in trying to withdraw funds when they reach retirement.

If you take an interest and have an ability equivalent to GCSE maths, you can cope.

jim8888 said:

And as for those who take no interest in finance -  i.e. most of the country, including my wife - I utterly fear for them and how much they'll be shelling out to IFAs and accountants to try and sort it all out. 

Annuities still exist.

Dinghy

@QrizB Thanks for that information about  with the 268 k limit .

Albermarle

Dinghy said:

@QrizB Thanks for that information about  with the 268 k limit .

Apart from that, if you take taxable income from both pensions, the income from both is added together and any amount over your personal allowance will be taxed.
It is just like having two jobs.
The tax maybe taken from just one pension, rather than both.
Plus when you get your state pension this is also taxable, although tax is never actually taken from it.
Effectively it reduces your personal allowance ( often to zero ) so you pay more tax on your other pensions.

wjr4

jim8888 said:

I have absolutely no idea how anyone who takes an interest in managing their pension(s) copes with the utter confusion, uncertainty and complexity involved in trying to withdraw funds when they reach retirement. Never mind the HMRC and tax implications. And as for those who take no interest in finance -  i.e. most of the country, including my wife - I utterly fear for them and how much they'll be shelling out to IFAs and accountants to try and sort it all out. 

Why would you need an accountant? 

leosayer

jim8888 said:

I have absolutely no idea how anyone who takes an interest in managing their pension(s) copes with the utter confusion, uncertainty and complexity involved in trying to withdraw funds when they reach retirement. Never mind the HMRC and tax implications. And as for those who take no interest in finance -  i.e. most of the country, including my wife - I utterly fear for them and how much they'll be shelling out to IFAs and accountants to try and sort it all out. 

There are any number of ways in life that financial hardship could be caused by a lack of understanding such as managing debts eg. credit cards, buying and maintaining a property, buying a maintaining a car etc.

That's why MSE exists - to help individuals to make better financial decisions.