Pru 25% tax free question

Muscle750
Muscle750 Posts: 1,075 Forumite
in Pensions, annuities & retirement planning
Ill be 55 at christmas and am planning to take the 25% tax free lump sum from my Pru pension, Ive spoke to them to see what the figures are etc althou i realise this can change to a small degree etc. I will ask them however just wondered do i have to wait till im actually 55 and then apply or can i submit any forms etc say a month before and then cut the processing time etc.

Comments

  • xylophone
    xylophone Posts: 44,394 Forumite
    Name Dropper First Anniversary First Post
    You need to ring the Pru, advise when you wish to access your pension and ask how soon you need to submit your application for payment at the date you require.
  • dunstonh
    dunstonh Posts: 116,359 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Ill be 55 at christmas and am planning to take the 25% tax free lump sum from my Pru pension

    Most pru plans do not support drawdown and require a transfer to another plan.
    I will ask them however just wondered do i have to wait till im actually 55 and then apply or can i submit any forms etc say a month before and then cut the processing time etc.

    Seeing as you are likely to need a pension transfer, you could start it earlier.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    Also be aware as soon as you start drawing any off your pension then there are much tighter limits on future contributions to try and stop you recycling the money back into the scheme.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Alexland wrote: »
    Also be aware as soon as you start drawing any off your pension then there are much tighter limits on future contributions to try and stop you recycling the money back into the scheme.

    That's true if the OP draws a penny more than 25%. But if he draws just the 25% then the only restrictions that might affect him are the rules against Recycling of Pension Lump Sums. These won't affect him if he continues to make his usual contributions.
    Free the dunston one next time too.
  • Muscle750
    Muscle750 Posts: 1,075 Forumite
    I havent contributed to this pension for over 5 years as ive been ploughing it into my company pension instead. Ill ring the Pru again this week to clarify whats what etc and ill post it on here in case anyone else wants to know etc.
  • Keeping_Motivated
    Keeping_Motivated Posts: 3,653 Forumite
    First Anniversary
    Hi Id be interested to hear how you are going on with this
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