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[biggriffin]

 Now I know we have a few members who are financially astute, I'm not one of them,
 Yes I know an IFA is the way to go, but I can't find the answer to a simple question, which is.

 Can I take some cash from my pension, and still keep my pension running..  I have 1 pension which I don't pay into anymore, Largest pot.. and a workplace current one, iwant to take some money from the static pension... Please keep it simple, 

[Doctor Gollum]

Only if you're over 55. If you're 54, you can't

[biggriffin]

Only if you're over 55. If you're 54, you can't

 Yup that I do know. 

[Viral_Jim]

Only if you're over 55. If you're 54, you can't

Unless you can convince HMRC you're terminally ill. Given you have to provide evidence of this, I hope Dr He's answer still applies. 

[Doctor Gollum]

Well, you said keep it simple...

If you're over 55, move all the static stuff to something like a Fidelity SIPP, and before you invest the part you want to keep, cash out what you want to pull out of it.

If you're not yet 55, in the UK, you cannot touch it.

[biggriffin]

Well, you said keep it simple...

If you're over 55, move all the static stuff to something like a Fidelity SIPP, and before you invest the part you want to keep, cash out what you want to pull out of it.

If you're not yet 55, in the UK, you cannot touch it.

 Don't want to go that route, just want to take out some cash for home improvements, and that's it, leave the rest alone.

[Doctor Gollum]

You've ignored the fundamental point... your age.

[LC0112G]

As others have asked - How old are you? If you aren't 55 yet, forget it till you are.

You also refer to a 'pot'. I assume that means it's a real pot of money/investments - called a Defined Contribution Pension. Private Pensions, SIPPs and Stakeholder are the 3 main types of DC Pension. If it's not a DC pension , and it's a Defined Benefit/Final Salary scheme then you'll need to refer to the rules of the scheme to see when/how you can access it. Public sector schemes are usually DB not DC  - Things like Police, Fire, NHS, Local Govt, Teaching etc are all DB not DC.

So, assuming it really is a DC scheme, and you're over 55, then you can take (up to) 25% of the pot tax free. You can also take none/some/all of the remaining 75% at any time, but...

1) You will pay tax on any/all of the 75% you take. It is counted as income, so you pay income tax at whatever rate applies.
2) If you take ANY money from the 75% you are limited to what you can continue to pay into any future pension to £4000 p/a.
3) You don't get to take a second 25% of the remaining 75% tax free next tax year. You only get one 25% bite of the cherry.

If you don't touch the remaining 75% then you can continue to put more than £4K p/a into your other pensions.

[LC0112G]

Well, you said keep it simple...

If you're over 55, move all the static stuff to something like a Fidelity SIPP, and before you invest the part you want to keep, cash out what you want to pull out of it.

If you're not yet 55, in the UK, you cannot touch it.

 Don't want to go that route, just want to take out some cash for home improvements, and that's it, leave the rest alone.

You might not be able to do that - it'll depend what features are supported by the scheme that the pot is currently with.

Whilst the new-ish pension rule/law changes do allow you to take the tax free 25% and leave the rest invested, there is no obligation on pension providers to support all the new rules. If your scheme is an old one, it may well not support new options like flexible access or drawdown. It may only support the old default, which was taking the 25% and then buying an annuity with the remaining 75%. That's not what you want.

If the current scheme does not support the new rules that you want to use, then your only option is to transfer the pot into a scheme that does support the new features. That's what DG means by moving the pot into a Fidelity SIPP. Whether Fidelity is the cheapest or most cost efficient provider for doing what you want is another question though.

[Sir Tigger KC]

If you can, cash it and blow it on booze, coke and hookers! 

[Viral_Jim]

.

If you don't touch the remaining 75% then you can continue to put more than £4K p/a into your other pensions.

You learn something new every day,.thanks for that 

Would I be correct in assuming this has no effect on the Lifetime Allowance?

[Rods2]

If you can, cash it and blow it on booze, coke and hookers a Morris Marina! 

FTFY

[Sir Tigger KC]

If you can, cash it and blow it on booze, coke and hookers a Morris Marina! 

FTFY

Yes a wiser investment. 

[jonathanh]

I know this is going to make it more complicated but there are a couple of misunderstandings above.

The £4K allowance applies in a different set of circumstances than just not touching the 75%

https://www.moneyadviceservice.org.uk/en/articles/money-purchase-annual-allowance/amp

Second and this is a common misunderstanding, it is an allowance not a limit.  You can even in those circumstances described above, contribute more than £4K but the tax relief is limited to £4K of contributions and remember for the purpose of the allowance employer contributions are included

[jonathanh]

You also refer to a 'pot'. I assume that means it's a real pot of money/investments - called a Defined Contribution Pension. Private Pensions, SIPPs and Stakeholder are the 3 main types of DC Pension. If it's not a DC pension ,

The three main types of defined contribution plan used in the workplace are : trust based, group personal pension and master trust.  Group SIPP is not that popular and stakeholder is an obsolete product