Pension 'pot' question

[anonymous-user]

I have a plan. Perhaps not very good, just looking into the pitfalls...
Theoretically, if you had 4 pension schemes.
2 deferred final salary pensions (A&B)from previous employers. Each of which I can take a 25% lump if I wish.
1 new rubbish pension (C)
1 pension 'pot' (D) with a pension company (£160K in it). Nothing new going into it but its performing well at this moment in time. I can take out 25% of that.

The question is, could I take 25% out of the pension company pot D. Then transfer the rest to deferred scheme A. Take 25% of that. Transfer A remaining pension to B. Take 25% of that.

Then use this cash to buy a rental property to give me a pension. Supplemented by whatever paltry amount the pensions pay me. My aim was to take out as much of the cash as I can to invest myself in property etc..

I'm still working by the way, just thinking ahead a bit...

[Toro Rosso]

Jimboka said:

I have a plan. Perhaps not very good, just looking into the pitfalls...
Theoretically, if you had 4 pension schemes.
2 deferred final salary pensions (A&B)from previous employers. Each of which I can take a 25% lump if I wish.
1 new rubbish pension (C)
1 pension 'pot' (D) with a pension company (£160K in it). Nothing new going into it but its performing well at this moment in time. I can take out 25% of that.

The question is, could I take 25% out of the pension company pot D. Then transfer the rest to deferred scheme A. Take 25% of that. Transfer A remaining pension to B. Take 25% of that.

Then use this cash to buy a rental property to give me a pension. Supplemented by whatever paltry amount the pensions pay me. My aim was to take out as much of the cash as I can to invest myself in property etc..

I'm still working by the way, just thinking ahead a bit...

I think there are lump sum recycling rules, but I have no idea what they may be and how they are applied. Probably best to get some professional and current advice before doing anything like that. The rules seems to change frequently, so son't rely on old advice.

[ellroy]

You can only take the 25% once, if you transfer a pension after that you've already had your max lump sum out, so only the 25% of the scheme you've transferred to remains, hope that makes sense.

e.g.

£100k pot take out £25k then transfer remaining £75k to another scheme of £100k

A remaining pot of £175k, but only £25k tfc available from it.

[anonymous-user]

Damn, I'll take advice but looks like back to the hamster wheel!

[r1chie]

Depends how much your final salary schemes (A&B) are going to provide you in terms of income - if it's in the region of £20k p.a. then you may be able to take more than 25% of your pension as lump sum through "flexible drawdown". I say in the region of £20k i'm assuming you would recieve a state pension as well.

Technically if you have the £20k guaranteed (Final Salary) income then you could take your whole £160k pot as a cash lump sum..... less tax of course

[anonymous-user]

Not that old - mid 50s..