Does a pension scheme terminate is you make a withdrawal?

I'm 59 and have a pension scheme and an ISA and I'm wondering whether to shift so my ISA savings into my pension bearing in mind that I call always withdraw it if I need it because I'm over 55 my question is if you make a withdrawal against a pension are you still allowed to carry on investing in it afterwards or does it terminate the pension scheme itself
If I ruled the world.......
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  • MallyGirl
    MallyGirl Posts: 6,564
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    If you withdraw anything taxable you are limited to £4k a year contributions from then on

    take a look at MPAA info
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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    All views are my own and not the official line of MoneySavingExpert.
  • Marcon
    Marcon Posts: 10,321
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    I'm 59 and have a pension scheme and an ISA and I'm wondering whether to shift so my ISA savings into my pension bearing in mind that I call always withdraw it if I need it because I'm over 55 my question is if you make a withdrawal against a pension are you still allowed to carry on investing in it afterwards or does it terminate the pension scheme itself

    Why would you want to? Both ISAs and pensions are tax-favoured environments. Withdrawals from your ISA are completely tax free; only 25% of withdrawals from your pension would be tax free.

    Not clear what you're trying to achieve.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • kidmugsy
    kidmugsy Posts: 12,709
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    Marcon wrote: »
    Why would you want to?...

    Not clear what you're trying to achieve.

    (i) If he pays tax at 20% then the money is worth 6.25% more in a pension (less any charges involved).

    (ii) If he doesn't currently use up all his personal allowance, or expects not to in future, the pension is even more valuable.

    (iii) There are also advantages in IHT, bankruptcy and dole collecting.
    Free the dunston one next time too.
  • Yes you can move it to a pension, but once you withdraw, the pension is then limited to how much you can put back in.
  • Marcon
    Marcon Posts: 10,321
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    kidmugsy wrote: »
    (i) If he pays tax at 20% then the money is worth 6.25% more in a pension (less any charges involved).

    (ii) If he doesn't currently use up all his personal allowance, or expects not to in future, the pension is even more valuable.

    (iii) There are also advantages in IHT, bankruptcy and dole collecting.

    Given the naivety (and I don't mean that in a critical sense) of the question, it might have been more helpful to have let OP answer for himself rather than having someone else second guess. I rather doubt those 3 reasons were all top of his mind!
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • 232607
    232607 Posts: 158 Forumite
    :T
    kidmugsy wrote: »
    (i) If he pays tax at 20% then the money is worth 6.25% more in a pension (less any charges involved).

    (ii) If he doesn't currently use up all his personal allowance, or expects not to in future, the pension is even more valuable.

    (iii) There are also advantages in IHT, bankruptcy and dole collecting.

    A better way would be to drip it in the pension via salary sac if available.
    The OP could elect to put themself on NMW then use money from the ISA to make up the reduction in income until the ISA is exhausted.
    Assuming they are in the 20% tax bracket, they'd be losing approx 66p net pay for every £1 that goes in the pension. Assuming they draw out of the pension in the same tax bracket, they'd get 85p after tax giving a whooping 29% uplift. More if they draw out in a lower tax bracket.

    Happy days. :T
  • Marcon
    Marcon Posts: 10,321
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    ...but we still don't know what he's trying to achieve...
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • 232607
    232607 Posts: 158 Forumite
    Marcon wrote: »
    ...but we still don't know what he's trying to achieve...

    I think he's trying to maximise his money.
    Being over 55 takes away the problem of not being able to access the money hence it starts to become simple calculations on how to do this best.
  • Actually reason 1!

    Puzzled as to why you think I had NO reason when that's a glaringly obvious one
    Marcon wrote: »
    Given the naivety (and I don't mean that in a critical sense) of the question, it might have been more helpful to have let OP answer for himself rather than having someone else second guess. I rather doubt those 3 reasons were all top of his mind!
    kidmugsy wrote: »
    (i) If he pays tax at 20% then the money is worth 6.25% more in a pension (less any charges involved).

    (ii) If he doesn't currently use up all his personal allowance, or expects not to in future, the pension is even more valuable.

    (iii) There are also advantages in IHT, bankruptcy and dole collecting.
    If I ruled the world.......
  • Precisely........................
    232607 wrote: »
    I think he's trying to maximise his money.
    Being over 55 takes away the problem of not being able to access the money hence it starts to become simple calculations on how to do this best.
    If I ruled the world.......
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