Pension 25% - again

- L
- LizBarker
  
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posted
16 years ago

Tue, Oct 30, 2007 5:05 PM

You may recall I posted about this some time ago as I thought I could take out 25% from my pension fund tax free as I was entitled to take the pension but didn't want to actually take it yet. The response here was that I couldn't.

Looks like someone else has misunderstood as well:

How to retire early: Take a tax-free lump sum Ken Taylor, from Mackenzie Taylor Wealth Management, said: Changes in pension legislation allow you to take tax-free cash from a pension fund, worth up to a quarter of the total, without taking income at the same time.

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- T
- Terry Harper
  
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posted
16 years ago

Wed, Oct 31, 2007 4:30 PM

You can do it by going into drawdown, but drawing down at a zero rate. That counts as taking the pension. The rest of the fund can continue to accumulate until you decide to start drawing down.

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