Taking 25% tax free element and moving rest to another pension

Sheltie_Owner

I have a pension due out this year and I have another pension due out when I am 67. I would like to know if I can take the 25% tax free lump sum from the pension due out this year and transfer the rest into the other pension that is due out when I am 67. They are both small pensions.

tetrarch

Is this a DB or DC pension?

Whether or not to sacrifice DB benefits for a TFLS is always a big decision, but the maths changes even more for an early (pre 67) pension

Regards

Tet

MallyGirl

it seems to be harder to transfer a DC pension once you have crystallised it by taking the 25% TFLS. More info would need to be provided about each one before much more could be said.

What is the reason for combining - fees, simplicity, functionality?

SVaz

I transferred a part crystallised DC from Charles Stanley to AJ Bell in December last year, no problems at all, took about 6 weeks as it was in specie.

tetrarch

I recently consolidated three DC pensions from other providers into Interactive Investor. Process was fairly straightforward and all three were post-TFLS

Regards

Tet

Linton

https://forums.moneysavingexpert.com/discussion/6667927/taking-25-tax-free-element-and-moving-rest-to-another-pension

Generally the only pensions that have a due date are DB (final salary) ones. In that case you have to ttake the whole lot at the same time. Also some older DC pensions may not permit you to take out the tax free lump sum whilst leaving the rest invested. So you would have to transfer first.

Otherwise if you are 55 years old (57 in 2028) you should be able to take the TFLS and transfer the rest later. You could also transfer at any time and then take the TFLS.

To be certain whether you can do what you wish we would need to know some more details of your pensions or you coud check with the pension provider.

Secret2ndAccount

https://forums.moneysavingexpert.com/discussion/comment/81995384#Comment_81995384

It's generally straightforward to transfer ALL of a pension after taking the TFLS. It's nigh on impossible to transfer PART of a pension once crystallised.

MallyGirl

happy to be corrected- I remembered reading something about some providers not accepting crystallised transfers in but it must have been a more complex transfer involved

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81995822#Comment_81995822

As you know providers can set there own rules, so I guess some will accept and some will not.

My SIPP provider insists you have to call them, and do it 'manually' rather than online for an uncrystallised pot.

Smudgeismydog

As Linton noted, if these are DC pensions, then although you might have set a retirement age for the plans when you originally started them, you wouldn’t normally expect them to become ‘due.

Do you want or need to take the tax free cash?