pension release personnel

[anonymous-user]

Hi asking for family member women over 65.

Pension is around 150k and wants to release the 25% tax free amount. How do you go about this,the pension is with arriva.

[PurpleMoonlight]

Contact AVIVA and request a crystallisation illustration.

[Ozzie Osmond]

What is "release".

First decision is whether she's wanting to draw a pension or just take the tax-free 25% and leave the rest invested. Once the 25% has been taken there's never any scope to take more tax free cash. For instance,

• Fund £100,000
• Take £25,000 tax free cash
• Leave £75,000 invested.
• £75,000 grows to £100,000 - can I have some more tax free cash please? No.

Compare,

• Fund today £100,000
• Over time fund grows to £120,000
• How much tax fee cash can I have? £30,000

[anonymous-user]

Ozzie Osmond said:

What is "release".

First decision is whether she's wanting to draw a pension or just take the tax-free 25% and leave the rest invested. Once the 25% has been taken there's never any scope to take more tax free cash. For instance,

• Fund £100,000
• Take £25,000 tax free cash
• Leave £75,000 invested.
• £75,000 grows to £100,000 - can I have some more tax free cash please? No.

Compare,

• Fund today £100,000
• Over time fund grows to £120,000
• How much tax fee cash can I have? £30,000

cheers understand principle of it, luckily she is in a good position (assets 280k) just a few unsecured debts and bills on house so a one off release would help.

[Ginge R]

Spruce,

See my reply to Dicky, just a few threads down the list. She can take the money simply enough - although (and I stand by to be corrected) in some of their pension plans, Aviva might request that the request to take tax free cash comes from an IFA.

[anonymous-user]

Ginge R said:

Spruce,

See my reply to Dicky, just a few threads down the list. She can take the money simply enough - although (and I stand by to be corrected) in some of their pension plans, Aviva might request that the request to take tax free cash comes from an IFA.

she will do. the main reason is to bring the house(main asset) up to salable standard as needs some work as well as debt relief, an ifa may offer better advice, just looking at options. cheers

[Jockman]

Ozzie Osmond said:

What is "release".

First decision is whether she's wanting to draw a pension or just take the tax-free 25% and leave the rest invested. Once the 25% has been taken there's never any scope to take more tax free cash. For instance,

• Fund £100,000
• Take £25,000 tax free cash
• Leave £75,000 invested.
• £75,000 grows to £100,000 - can I have some more tax free cash please? No.

Compare,

• Fund today £100,000
• Over time fund grows to £120,000
• How much tax fee cash can I have? £30,000

You're right Ozzie.......right up until OP sprung that last posting

Surely investing in another tax free area ie primary residence would be a useful 'home' for the tax free lump sum?