Originally posted by Lance
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Drawing down 25% of Pension to Pay Off Mortgage
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Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k. -
Originally posted by Fred Bloggs View PostDraw down just 1p and yes, that's true. However, the OP asked about taking the 25% tax free lump sum. On it's own, that has no effect on future contributions.
Can I Take Money From My Pension And Keep Paying In?
Can I take a lump sum, tax-free payment of up to 25% when I reach 55 and still pay into my pension plan along with my employer making their usual payments up until I’m 65, or later?
If you’re in a modern flexible pension, you can take your tax-free cash and continue to make contributions into your pension.
And if you just take your tax-free cash and maintain the pension contributions you and your employer are currently making, there won’t be tax consequences.
But, bear in mind that not all company pension schemes are flexible enough to let you do this, especially if you’re still working.
And some older pension schemes don’t let you take just your tax-free cash without also taking an income, so you’d need to check.See You Next TuesdayComment
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Can I take a lump sum, tax-free payment of up to 25% when I reach 55 and still pay into my pension plan along with my employer making their usual payments up until I’m 65, or later?
If you’re in a modern flexible pension, you can take your tax-free cash and continue to make contributions into your pension.
And if you just take your tax-free cash and maintain the pension contributions you and your employer are currently making, there won’t be tax consequences.
But, bear in mind that not all company pension schemes are flexible enough to let you do this, especially if you’re still working.
And some older pension schemes don’t let you take just your tax-free cash without also taking an income, so you’d need to check.
On the other hand, myself if I had a vanilla defined contribution pension pot sitting in a legacy scheme without those freedoms, I'd be likely to move the pot elsewhere to avail myself of such pension freedoms. Yes, I've done that, yes, I've drawn down my 25%, no I haven't taken a single penny of drawdown income, yes, I have paid as much as GBP 80k back into the pension in a couple of years. HTH.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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What age can you do this? i.e. take 25% out.
Assume its tax free etc and doesnt count as income etc?
I guess if you're approaching age you might as bung in max year before then take lump out as soon as eligible if thats the case.Rhyddid i lofnod psychocandy!!!!Comment
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Originally posted by psychocandy View PostWhat age can you do this? i.e. take 25% out.
Assume its tax free etc and doesnt count as income etc?
I guess if you're approaching age you might as bung in max year before then take lump out as soon as eligible if thats the case.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Originally posted by Fred Bloggs View PostPresently, 55.Rhyddid i lofnod psychocandy!!!!Comment
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