Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • paulfoel
    • By paulfoel 13th Mar 17, 2:52 PM
    • 5,374Posts
    • 2,551Thanks
    paulfoel
    Pension drawdown at 55
    • #1
    • 13th Mar 17, 2:52 PM
    Pension drawdown at 55 13th Mar 17 at 2:52 PM
    Understand you can take 25%. Is this tax free? Even if you're still working?
    i.e. Can you continue working as well?

    What are the options with the remaining 75% then? Can you keep it in pension for later? Do you then have to buy an annuity or can you do further drawdowns later?

    Is it 55th birthday or end of tax year afterwards? If so, isnt it worth bunging the max in the year before because you'll save tax and can get 25% back in a bit anyway?
    Cymru am Byth !!!
Page 1
    • kidmugsy
    • By kidmugsy 13th Mar 17, 3:22 PM
    • 10,529 Posts
    • 7,217 Thanks
    kidmugsy
    • #2
    • 13th Mar 17, 3:22 PM
    • #2
    • 13th Mar 17, 3:22 PM
    Understand you can take 25%. Is this tax free? Even if you're still working?
    i.e. Can you continue working as well?

    What are the options with the remaining 75% then? Can you keep it in pension for later? Do you then have to buy an annuity or can you do further drawdowns later?

    Is it 55th birthday or end of tax year afterwards? If so, isnt it worth bunging the max in the year before because you'll save tax and can get 25% back in a bit anyway?
    Originally posted by paulfoel
    Para 1: yes; yes; yes.
    Para 2: many people probably just keep it for later when they might be able to drawdown with less tax to pay.
    Para 3: birthday. yes.
    • xylophone
    • By xylophone 13th Mar 17, 4:00 PM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #3
    • 13th Mar 17, 4:00 PM
    • #3
    • 13th Mar 17, 4:00 PM
    Is this a scheme provided by your employer to which you are still contributing?
  • jamesd
    • #4
    • 13th Mar 17, 5:58 PM
    • #4
    • 13th Mar 17, 5:58 PM
    You don't have to buy an annuity. Normally the 75% just goes into a drawdown account that you can draw from whenever you like.

    You shouldn't normally take money from the drawdown account while still working because that will cut your annual limit for pension contributions to 4k a year.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

813Posts Today

7,170Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin