25% tax free lump sum from pension

betonit · 08-04-2021 10:11PM #1

Hi.
Let's say you're are entitled to take 25% of your pension tax free, you're 55 and the pension is worth 100k so u take 25k tax...if by the time u 65 the pension grows to 120k.. Can you take another 5k ((120x25%)-25).. Or the fact you took 25% at some stage that's it?
Thanks

09-04-2021 08:35AM

betonit wrote: »

Hi.
Let's say you're are entitled to take 25% of your pension tax free, you're 55 and the pension is worth 100k so u take 25k tax...if by the time u 65 the pension grows to 120k.. Can you take another 5k ((120x25%)-25).. Or the fact you took 25% at some stage that's it?
Thanks

If you're taking tax-free-cash you're maturing the pension and moving (the balance) from a pre-retirement product to a post-retirement product (eg. A(M)RF) so, you get just one bite of the cherry. 25% at maturity, that's it.

Gerard

www.prsa.ie

betonit · 09-04-2021 09:52AM

Thanks for that info.
So that's a pension from a prev job. Would taking the tax free lump sum affect tax relief on avcs into a pension in a current job? Thanks

Henry Ford III · 09-04-2021 10:26AM

betonit wrote: »

Thanks for that info.
So that's a pension from a prev job. Would taking the tax free lump sum affect tax relief on avcs into a pension in a current job? Thanks

No.

25% tax free lump sum from pension

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