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Workplace Pension
Upwind
Posts: 186 Forumite
Afternoon ladies/gents,
Wonder if anyone can advise...
I have been TUPE'd over to a new contract and my pension has moved also.
My question is, I thought I had read somewhere that it was possible to skim a percentage of the top of my 'pot' without attracting any tax penalty - can anyone confirm if this is true and what percentage it is.... I had 25% in mind?
Many thanks for any help/guidance.
Wonder if anyone can advise...
I have been TUPE'd over to a new contract and my pension has moved also.
My question is, I thought I had read somewhere that it was possible to skim a percentage of the top of my 'pot' without attracting any tax penalty - can anyone confirm if this is true and what percentage it is.... I had 25% in mind?
Many thanks for any help/guidance.
0
Comments
-
Are you thinking of the Pension Commencement Lump Sum?
https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/tax-and-the-cash-lump-sum
Are you aged 55 or over (or in a scheme with a protected pension age earlier than this)?
Are you planning to bring a pension into payment?0 -
You can take out 25% tax free but..
1) You need to be 55 or over unless you are a special case
2) It doesnt work for a DB (final salary) pension - I assume yours is DC.
3) You would need to discuss the matter with your new employer's pension people. It could mean that you would have to leave your employer's scheme.
4) Whether it is in your financial best interests depends on your circumstances, unless you have a very good reason to do so it would probably be better to leave the money where it is.0 -
You can take out 25% tax free but..
1) You need to be 55 or over unless you are a special case
2) It doesnt work for a DB (final salary) pension - I assume yours is DC.
3) You would need to discuss the matter with your new employer's pension people. It could mean that you would have to leave your employer's scheme.
4) Whether it is in your financial best interests depends on your circumstances, unless you have a very good reason to do so it would probably be better to leave the money where it is.
Thanks for this ..... I'm not a special case and haven't reached 55 yet - so, it's a no for me anyway - but thank you anyway.0
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