I'm due to turn 55

YellowCarBlueCar

You haven't explained what you're trying to achieve.
You pension pot (which implies a DC scheme) is invested in some form of investment fund.  The pension is a tax wrapper.
You can change the investment funds within the wrapper without needing to take the money out.  If the current scheme doesn't offer the range of investment funds that you'd like, then you can transfer it to one that does (e.g. a SIPP), though you'd be wise to check that the current pension doesn't offer any protected benefits first.

If it's not a DC scheme then that's a different matter.

One thing you may or may not be aware of it the MPAA which is triggered as soon as you access any taxable income from your pension.  Once that is triggered you can't get tax relief on contributions above £10,000 to your pensions in any tax year,

It sound to me as though you want to move your funds from one tax wrapper (pension) to another (ISA), but I can't see what you're trying to achieve by that.

saajan_12

Strider71 said:

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

I have 3 pension pot. One is a work place, which I am not touching & I'm conttbuting the max contributions in this. I have A final salary pension and an old work base pension, which i'm contrbuting nothing to. I am taking a lump sum from the Final salary and a lump sum from my old work base pension. The old workbase pension and the final salary pension are the 2 I am think of taking 1.5% to 2.5% yearly and reinvesting into Stacks ISA and other investments. Hope this answers your questions. Any advice would be helpful. 

Advise you to not do this and instead change the stock / fund your old pension is invested in. 

Basically the benefit of S&S investments in general is that they appreciate in line with the broader equities markets and keep up with inflation. That is true whether the investments are in a pension or outside. The extra benefit with a pension is that
(a) the gain isn't taxed (outside you'd be hit with dividend tax and capital gains tax)
(b) you saved income tax when you put the money into the pension, and won't pay it until you withdraw the money. So if you withdraw when you're retired and earning less, then your income tax rate is likely lower eg 0% or 20%. 

By withdrawing the money now, you either lose (b) if you deposit into an S&S ISA or (a) and (b) if you deposit in a general investment account. You anyway have the benefit of being invested in stocks & shares. 

If you want to diversify, you can do that within a pension. See what options are available in that pension scheme platform, or move it to a SIP (Self Invested Pension). 

Strider71

Strider71 said:

QrizB said:

Strider71 said:

Baldytyke88 said:

The state pension age is increasing and some private pensions match the state pension age. Are you able to draw your pension at 55?

These are old pension I don't contribute anymore.

That hasn't answered the question.

The law has changed and most pensions will shortly have a minimum age of 57. A few pensions can continue to allow withdrawal at 55.

Have you confirmed with your pension scheme administrators that you will still be able to draw them at 55, and won't be affected by the change in the law?

Yes I have. I turn 55 January 9th in a month. 

I have 3 pension pot. One is a work place, which I am not touching & I'm conttbuting the max contributions in this. I have A final salary pension and an old work base pension, which i'm contrbuting nothing to. I am taking a lump sum from the Final salary and a lump sum from my old work base pension. The old workbase pension and the final salary pension are the 2 I am think of taking 1.5% to 2.5% yearly and reinvesting into Stacks ISA and other investments. Hope this answers your questions. Any advice would be helpful. Yes I can draw on the old work base penion and the final salry when I turn 55 in a moth. I am trying to max myincome when I finally retire in about 10 years. I also what a selection of pots , so all my eggs are not in the same basket. 

ColdIron

saajan_12 said:

Strider71 said:

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

I have 3 pension pot. One is a work place, which I am not touching & I'm conttbuting the max contributions in this. I have A final salary pension and an old work base pension, which i'm contrbuting nothing to. I am taking a lump sum from the Final salary and a lump sum from my old work base pension. The old workbase pension and the final salary pension are the 2 I am think of taking 1.5% to 2.5% yearly and reinvesting into Stacks ISA and other investments. Hope this answers your questions. Any advice would be helpful. 

If you want to diversify, you can do that within a pension. See what options are available in that pension scheme platform, or move it to a SIP (Self Invested Pension). 

Would that be a SIPP (Self Invested Personal Pension) rather than a SIP (Share Incentive Plan) nothing to do with pensions?

Strider71

saajan_12 said:

Strider71 said:

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

I have 3 pension pot. One is a work place, which I am not touching & I'm conttbuting the max contributions in this. I have A final salary pension and an old work base pension, which i'm contrbuting nothing to. I am taking a lump sum from the Final salary and a lump sum from my old work base pension. The old workbase pension and the final salary pension are the 2 I am think of taking 1.5% to 2.5% yearly and reinvesting into Stacks ISA and other investments. Hope this answers your questions. Any advice would be helpful. 

Advise you to not do this and instead change the stock / fund your old pension is invested in. 

Basically the benefit of S&S investments in general is that they appreciate in line with the broader equities markets and keep up with inflation. That is true whether the investments are in a pension or outside. The extra benefit with a pension is that
(a) the gain isn't taxed (outside you'd be hit with dividend tax and capital gains tax)
(b) you saved income tax when you put the money into the pension, and won't pay it until you withdraw the money. So if you withdraw when you're retired and earning less, then your income tax rate is likely lower eg 0% or 20%. 

By withdrawing the money now, you either lose (b) if you deposit into an S&S ISA or (a) and (b) if you deposit in a general investment account. You anyway have the benefit of being invested in stocks & shares. 

If you want to diversify, you can do that within a pension. See what options are available in that pension scheme platform, or move it to a SIP (Self Invested Pension). 

The other option I am considering is start putting monthly money into the old pension. I have already opened a investment Stocks ISA and other investment, I regular add money to my stock ISA and my investments. By taking money from my old pension, I though it would be an idea for it to grow with my old pension and my DC pension which i'm paying max too. So the advice your saying. leave the old 2 pensions. 

QrizB

Strider71 said:

I have 3 pension pot. One is a work place, which I am not touching & I'm conttbuting the max contributions in this. 

Your current workplace pension is a Defined contribution pension?

Strider71 said:

I have A final salary pension ...

There is not "pot" to take money from with a Final Salary (Defined Benefit) pension. Once you claim it, it will usually pay out a sum of money every year until you die.

Strider71 said:

... and an old work base pension, which i'm contrbuting nothing to.

I this workplace pension also a Defined Contribution pension?

Strider71 said:

I am taking a lump sum from the Final salary and a lump sum from my old work base pension.

Once you take the lump sum from your Final Salary pension, you will start receiving pension payments.

Strider71 said:

The old workbase pension and the final salary pension are the 2 I am think of taking 1.5% to 2.5% yearly and reinvesting into Stacks ISA and other investments.

You won't be able to take a % from the Final Salary pension; you;ll receive pension payments.
You've still not explained why you want to draw money from your other workplace pension and invest it elsewhere.

Strider71

QrizB said:

Strider71 said:

I have 3 pension pot. One is a work place, which I am not touching & I'm conttbuting the max contributions in this. 

Your current workplace pension is a Defined contribution pension?

Strider71 said:

I have A final salary pension ...

There is not "pot" to take money from with a Final Salary (Defined Benefit) pension. Once you claim it, it will usually pay out a sum of money every year until you die.

Strider71 said:

... and an old work base pension, which i'm contrbuting nothing to.

I this workplace pension also a Defined Contribution pension?

Strider71 said:

I am taking a lump sum from the Final salary and a lump sum from my old work base pension.

Once you take the lump sum from your Final Salary pension, you will start receiving pension payments.

Strider71 said:

The old workbase pension and the final salary pension are the 2 I am think of taking 1.5% to 2.5% yearly and reinvesting into Stacks ISA and other investments.

You won't be able to take a % from the Final Salary pension; you;ll receive pension payments.
You've still not explained why you want to draw money from your other workplace pension and invest it elsewhere.

That is correct. I will be receiving monthy payments from my final salary pension, which I'm going to reinvest. My end goal is to have as much money in pension and investments to retire comfortable. By re-investing I was thinking all my money will have a chance to grow more as all my pots gets bigger, with compound interest.

MallyGirl

Can you take the PCLS from the final salary pension without activating the rest which will have an actuarial reduction for taking it early and will be taxable at your current rate?

QrizB

Strider71 said:

My end goal is to have as much money in pension and investments to retire comfortable.

If that's your goal, I have to wonder why you're drawing pensions at 55 whle you continue to work. You might find you'll be better leaving your current pensions invsted until you retire.
Have you already told your old pension providers that you want to draw your pensions? If not, you might want to reconsider.

Silvertabby

MallyGirl said:

Can you take the PCLS from the final salary pension without activating the rest which will have an actuarial reduction for taking it early and will be taxable at your current rate?

No, DB schemes are all or nothing.