![]() Taking TFC and leaving the balance isn’t an option. But this isn’t the same as flexi-access drawdown – each withdrawal will consist of 25% tax free cash the balance of the withdrawal taxed as income. The personal pension is a little more flexible as phased withdrawals can be taken using the new ‘uncrystallised funds pension lump sum’ (UFPLS) option. The Occupational Schemes offer no flexibility at all, so an annuity is the only income option. Her adviser informs her that aside from higher charges and limited investment choice compared to some more modern pension contracts, the main problem for Julie is none of her pensions will allow the new flexi-access drawdown from April 2015. And she’d like to leave a legacy for the kids if she can. She also wants to have ready access to her funds. ![]() Being able to take tax free cash and/or income from her pension as and when it’s needed is therefore a big draw for her. Julie’s main aim is to be able to use all her savings to generate a tax efficient income, both in semi-retirement, and later in full retirement. Her existing pension contracts are a mixture of occupational and personal pensions valued at £600K. She plans to phase her retirement by reducing her full time hours to part time and supplement her income from her pension savings – using a combination of tax free cash and/or income. She has saved into a variety of pensions and a mix of cash and stock and shares ISAs which is her contingency fund. Julie is in her late 50’s with adult children. Consolidating older pensions into a more modern vehicle may not only allow greater flexibility on how income can be taken, but could allow flexible access without cutting funding limits. Not everyone will be able to access all the new pension freedoms through their current pension scheme.
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