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    • Durban
    • By Durban 10th Nov 18, 8:44 PM
    • 107Posts
    • 291Thanks
    Durban
    TFLS Question
    • #1
    • 10th Nov 18, 8:44 PM
    TFLS Question 10th Nov 18 at 8:44 PM
    If the 25% TFLS was taken at 55, does that pension then have to go to a drawdown account?


    If you have no intention of taking anything other than the TFLS and want to carry on paying into the pension , do you then pay into a new pension? The reason I am asking this is surely the new money that you pay in must attract a new 25 % tax free sum that you can also take?


    Many thanks
    Mortgage at highest start date - 25/9/2014 - 92000
    Mortgage now 13/4/2018 - 48,674
    MFD - October 2025 MF Goal Date 2021
Page 1
    • p00hsticks
    • By p00hsticks 10th Nov 18, 9:06 PM
    • 6,613 Posts
    • 7,175 Thanks
    p00hsticks
    • #2
    • 10th Nov 18, 9:06 PM
    • #2
    • 10th Nov 18, 9:06 PM
    My experience is that your pension provider starts a second 'drawdown' account with the existing pension funds (less the 25% TFLS paid out) in it, and any new contributions start to build up the original (now empty) fund again.
    • Alexland
    • By Alexland 10th Nov 18, 9:21 PM
    • 4,204 Posts
    • 3,524 Thanks
    Alexland
    • #3
    • 10th Nov 18, 9:21 PM
    • #3
    • 10th Nov 18, 9:21 PM
    Yes, or you could just open a new pension elsewhere if you want to spread your eggs.
    • sandsy
    • By sandsy 10th Nov 18, 10:08 PM
    • 1,419 Posts
    • 867 Thanks
    sandsy
    • #4
    • 10th Nov 18, 10:08 PM
    • #4
    • 10th Nov 18, 10:08 PM
    When you take TFLS, 3 times that amount is then allocated to a drawdown account. Pension providers may also refer to this as crystallised funds.

    Any new contributions you pay go into uncrystallised funds. Pension providers can keep the two elements separate.
    • dunstonh
    • By dunstonh 11th Nov 18, 12:51 AM
    • 96,456 Posts
    • 64,353 Thanks
    dunstonh
    • #5
    • 11th Nov 18, 12:51 AM
    • #5
    • 11th Nov 18, 12:51 AM
    ....but do be aware that most legacy schemes and many workplace schemes do not allow drawdown. So, you may need to move the pension into a scheme that does.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • AnotherJoe
    • By AnotherJoe 11th Nov 18, 8:46 AM
    • 12,084 Posts
    • 14,154 Thanks
    AnotherJoe
    • #6
    • 11th Nov 18, 8:46 AM
    • #6
    • 11th Nov 18, 8:46 AM
    My experience is that your pension provider starts a second 'drawdown' account with the existing pension funds (less the 25% TFLS paid out) in it, and any new contributions start to build up the original (now empty) fund again.
    Originally posted by p00hsticks
    Same with me (with Hargreaves Lansdown. )
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
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