I understand that you can take 25% of a pension fund out as a tax-free lump sum (subject to a maximum), but I'm a bit confused as to when you can do this.
This is a bit of a hypothetical, but say I have 800k in two PRBs (the first is worth 700k, the second 100k).
I plan to retire and take 200k tax-free and put the rest in an ARF. But I don't really need the 200k lump sum yet. I'd much prefer to have it in an ARF, invested in the markets with tax-free growth from the ARF, and maybe take the tax-free 200k 10 years down the line to help the kids with house deposits, rather than taking it now and paying CGT on any growth.
Is this approach possible, or do I have one go at taking the tax-free lump sum at the point that I mature by PRB, or can I take the tax-free portion in dribs and drabs?
I mention two PRBs, because I assume that I can at least retire them at different times and take 25% of each at each 'retirement'?
This is a bit of a hypothetical, but say I have 800k in two PRBs (the first is worth 700k, the second 100k).
I plan to retire and take 200k tax-free and put the rest in an ARF. But I don't really need the 200k lump sum yet. I'd much prefer to have it in an ARF, invested in the markets with tax-free growth from the ARF, and maybe take the tax-free 200k 10 years down the line to help the kids with house deposits, rather than taking it now and paying CGT on any growth.
Is this approach possible, or do I have one go at taking the tax-free lump sum at the point that I mature by PRB, or can I take the tax-free portion in dribs and drabs?
I mention two PRBs, because I assume that I can at least retire them at different times and take 25% of each at each 'retirement'?