Increase Your 25% Tax Free Pension Lump Sum | UK Pensions

[@chrisbourne-retirementplanner]

Thanks everyone for such a positive response to this video! Let me know if there are other pension related topics you’d like to see covered in future content 🙂

[@jonathanatkins9030]

A-Day forms. Why are they important, how precise do you need to be, what should you do if you have missing valuations, etc

[@johnfrancis4944]

Thankyou very helpful

[@tommurray5156]

I'd be very interested in finding out what to do if you have reached 55 and your pension funds are spread across a number of different pension funds, with no option as it is to merge them all into one... Just asking for a friend!!

[@Julian-zc4ik]

Thank you Chris - an excellent video - I have liked and subscribed. How can I get in touch with you on a professional basis please? Cheers, Julian

[@milolee1725]

Hello Chris Great,simple insightful video. Have a question...I have been receiving a royal mail pension(following a traffic incident whilst working for Royal mail) for the last 20 years. At aged 56 can I now withdraw a cash lump sum? Many thanks in advance for your prompt reply

[@assonancex]

I wish this stuff were taught in school. Financial literacy is so important for one's life prospects.

[@chrisf1600]

But would anyone pay attention ? I was a pretty geeky student, but I reckon that even I would have slept through a lesson on the merits of passive investing, tax optimization, or drawdown strategies. Now turn your textbooks to page 437.

[@chrisbourne-retirementplanner]

I agree, and I also agree with the reply above! They are trying to teach things more in schools, but I think they need to find a way of making the education more practical and improving the overall content.

[@johnporcella2375]

They are teaching finance in some schools. I was glancing at one of the textbooks and the pages on mortgages and it was very detailed and in-depth.

[@rogerjohnson898]

The governments purposely don’t teach all these basics in order to tax us to death ☠️ totally unacceptable!!!

[@dinky9216]

I wish that the system was simple enough that it didn't need teaching. Why should people that find such things confusing be penalised?

[@don-qb4xb]

My head is spinning but this is gold. Many thanks.

[@chrisbourne-retirementplanner]

Glad you thought so! Thank you 👍

[@lynnrogers8980]

Absolutely first class. This is the clearest way I've seen it explained.

[@chrisbourne-retirementplanner]

Thanks so much Lynn I’m glad it was helpful.

[@roadrunner1337]

I am not a professional but reasonabley well informed, and have seen this covered before, but this is the best one I have seen.

[@chrisbourne-retirementplanner]

That’s good of you to say, thank you.

[@Draw2quit]

I intend to take £20000 per year until I hit the 25 percent. Pay that £20000 into a stocks and shares isa every year. Once it's in my isa it's protected from capital gains as well as never having to pay the initial tax on it. Leave that money in the isa to grow and add it to my income when I retire tax free.

[@jonathanatkins9030]

A complex issue explained very simply. No flashy graphics just well presented examples that show the principle.

[@chrisbourne-retirementplanner]

Thanks Jonathan! I appreciate that.

[@neilcook1652]

This is the second time I’ve watched this video, with a gap of months, it’s still excellent, thanks so much for creating such valuable content

[@jasonsmith1158]

Hi CHRIS ….. thank you very much for this video which is extremely helpful and very informative !!! In fact I would even go so far to say that this is the clearest best explained video on this subject probably anywhere on the Internet ! I would suggest to most people that they will probably want to watch it several times and it is very easy to get your head round it if one does that .

[@chrisbourne-retirementplanner]

That’s a very nice comment Jason thank you very much!

[@robbobkirk]

Stumbled across this video and despite having watched other content, never knew this information. The example at the end is very useful. Thanks Chris.

[@chrisbourne-retirementplanner]

You’re most welcome! Thanks for watching I’m glad it’s useful.

[@kevinjackson6011]

By far, the best piece of advice about pensions I've ever seen. I'm 61 and will soon need to decide what to do, many thanks 👍

[@chrisbourne-retirementplanner]

Thanks Kevin I’m really pleased you’ve found it helpful! 👍🏼

[@andywood233]

I'm only 43 so nowhere near retirement yet although hoping that 55 could be the magic number. I've been researching a lot about my pension recently but didn't know this crucial information about how the 25% draw down works. I'm very grateful to you for providing it and in such a clear to understand manner. Thank you

[@pompeymonkey3271]

Subscribed at 2:46 because you have already explained a few terms about pensions, of which I knew nothing before.

[@chrisbourne-retirementplanner]

Good to hear that thanks for subscribing!

[@grantlong4315]

This is the best video I have seen explaining the tax free methods of a pension draw down. You make some complex and explain it simple. Love it. Thank you.

[@chrisbourne-retirementplanner]

Very kind Grant! Thanks for watching and I’m glad it’s useful.

[@davidgreen8171]

Best explanation of pensions and tax efficiency that I have ever seen on KZbin, well done and thanks!!

[@worigami]

Chris, the clearest explanation I have seen so far. I turn 55 this year and have been exploring taking a tax-free lump sum from one or more of my plans. Two of my plans are not available any more, Scottish Widows - With Profits Unitised so I have been told they will need to be crystalised and I will have to take the full 25% tax-free from both and not a fixed amount. They'll then be moved to a single drawdown plan. That's to be confirmed when I speak to their pensions expert on the next call.

[@Jeremy-Sonander]

Thanks

[@chrisbourne-retirementplanner]

Thank you 👍🏼

[@barabajagal2287]

Thank you! I’ve been watching many pension videos, and this has been by far the most useful! Finally some of my questions answered.

[@chrisbourne-retirementplanner]

You’re very welcome it’s great to hear this!

[@chriscutts9650]

Thanks Chris this video has been very helpful, I'm 58 and thinking about taking my 25% very soon.

[@chrisbourne-retirementplanner]

Excellent Chris I’m glad it’s helpful and timely 👍🏼

[@snorkypigny1]

could I explain this…yes. Could I explain it a simply as you did no chance. Fantastic. I’m subscribed. I make things look so difficult.

[@chrisbourne-retirementplanner]

Thanks very much I’m really pleased you found it clear and concise.

[@paulbradley4360]

Hi Chris, the above video is first I have seen from you, thanks so much for the information. I have subscribed and will reviewing all your information. I have just gone 65, still working and in a money purchase scheme. My state pension age is 66. I'm probably going to continue working to at least 67. I will try to get my head around the subject and you have provided me with a great start. I was not aware of any of the stuff you provided. Thanks again.

[@chrisbourne-retirementplanner]

That’s very kind Paul thanks for your comment, and I hope my other content provides good value 👍🏼

[@davidwyles1489]

Thankyou your presentation has been a great help and I can now have an informed conversation with my IFA next week when we plan to go into drawdown.

[@chrisbourne-retirementplanner]

Great David, glad it was helpful 👍

[@Super8Rescue]

I have 46 years of LGPS due in a year, so I have subbed and have a lot of learning to do. Cheers Chris

[@chrisbourne-retirementplanner]

Thanks for subscribing. I hope my content helps.

[@orbitalforest]

I'm cr*p at all this sort of stuff but you've helped me grasp this somewhat . Thanks.

[@chrisbourne-retirementplanner]

Glad it’s helpful.

[@garyten13]

Absolutely brilliant, The idea for the plastic bricks makes so much sense, its a fantastic visual representation, very professional, and explained carefully. I thought i knew what i could do with my my draw down pension, but this is at a whole other level. !! Well done Thank you, You got another SUB,

[@chrisbourne-retirementplanner]

Thanks so much for your comment Gary - really appreciate the feedback and it’s great to hear that it’s useful!

[@rocksy71]

Either I’m a bit Thick or other videographer/financial advisors overcomplicate there portrayal of how drawdown works because I totally understood your description of which way or the best way or the worst way to actually take your pension Or proportions of drawing on part or all of my pension overtime. It was so helpful that I’m going to save this video so asked to remind me in the future when it becomes time to look at this in more detail thank you

[@chrisbourne-retirementplanner]

I’m really pleased it’s helpful to you!

[@LennonToby]

What an amazingly helpful guide. I recently found an old work place pension I didn't know I had and wondered if I could take 25% at 55 and draw down around £5000- £6000 for the next five years to pay my mortgage off by the time I'm 60 which would be all the pension pot gone.

[@rijamor]

I thought I was pretty finance-savvy, but I didn't know this. Really useful. Thank you.

[@chrisbourne-retirementplanner]

You're welcome!

[@david_akerman]

Very clearly explained, well done. I remember as a child learning to count with Cuisenaire Rods (and I'm pleased to see that now, 58 years later, they are still produced and used), and I'm still a visual thinker, so the blocks certainly helped!

[@chrisbourne-retirementplanner]

Thanks David. I do find the blocks make this subject much easier to explain. Glad it’s helpful 👍🏼

[@sachipatel6923]

Hi Chris, I stumbled upon this video via KZbin recommendations. I have been thinking about this for sometime now,(even though I have 2 decades before I can withdraw my pension). I have never heard anyone explaining this subject as clearly as you did, especially about UK laws. Clearly there is a huge gap when it comes to USA and UK investment/financial content. Keep up the good content and I will be binge watching your other videos. Thanks

[@chrisbourne-retirementplanner]

Very kind words Sachi! I hope you enjoy the other content 👍🏼

[@rogerjohnson898]

The governments purposely don’t teach all these basics in order to tax us to death ☠️ totally unacceptable!!!

[@richardholborn]

very helpful thank you - I may need to watch tis a few times to get my head around it but - great info clearly delivered!!b

[@chrisbourne-retirementplanner]

Thanks Richard I appreciate it. I’m pleased it helps.

[@kevinsimpson4278]

Just found you by accident, very informative, I'm knocking on 55 so will have to decide which way to go with my post office pension.

[@chrisbourne-retirementplanner]

Glad it’s helpful Kevin.

[@iainhunneybell]

Very very helpful. I presume the uncrystalised pension and flexi-access drawdown pots are essentially the same thing in terms of investment and future growth, just separated as one is pre and the other post crystallisation? Both remain invested. Both growing, but you have two investment pots?

[@chrisbourne-retirementplanner]

Absolutely correct - they are only separated so the correct tax treatment is applied upon withdrawal.

[@lindsaynewell6319]

this was very informative and helpful (even 3 years later). Additional complexity for me is x-border tax treaty as I live in the US.

[@chrisbourne-retirementplanner]

Glad it was helpful. From my observation, the US is one of the most difficult countries to deal with when it comes to taxing benefits!

[@stephenhughes6704]

Thank you for a straight forward explanation of the tax free allowance.

[@chrisbourne-retirementplanner]

You’re welcome Stephen glad it’s helpful.

[@strongbowism]

Very informative video. Myself being 6 months away from 55 this has made the whole tax free, draw down, annuity subject that much more understandable and will help me next time I meet with my FA. Food for thought. Thank you Chris.

[@chrisbourne-retirementplanner]

You're very welcome! I'm really glad you found it useful.

[@richardharnwell3331]

Just found this and it’s one of the clearest illustrations of the subject I’ve ever seen. Thanks so much!

[@chrisbourne-retirementplanner]

Thanks very much Richard. It’s great to hear that my explanations have been helpful!

[@gimbalair]

Very helpful. About to go into drawdown. Will be doing things on a monty basis so pot keeps growing, and using savings to avoid tax burden

[@JohninRosc]

I usually watch finance related videos at 1.25 or 1.5 x speed. This one is so pertinent to the situation I am in right now, that I have watched it about 3 times at 0.75 x speed! I'm a bright enough person but what you've just managed to make sense of here, is something that I have simply not been able to understand properly until now. I am eternally indebted - the video was simply lovely! Thank You.

[@chrisbourne-retirementplanner]

What a fantastic comment John! I love it when I know that my content has really helped someone’s understanding. Thank you for this.

[@kekkos46]

Ditto to John’s comment, you know you’ve struck gold when you have to revert to normal speed and rewind sections to re watch. Hats off to you Chris great content.

[@keithjones3684]

Fantastic explanation of a complex issue for people who are thinking maybe of early retirement, , I've just retired at 58 and done exactly as you've mentioned and not paying any tax for the first time ever is a joy, really enjoyed you're video, keep up the good work, just subscribed ..

[@marianomatsone5946]

Wow this goes to show that we need to carry out a lot of research before going ahead with our pension withdrawals. Thank you very much for the simple illustrations. New Subscriber here. This information is pure gold. Just came across your channel. Making some popcorn for the binge watch this weekend 😀

[@chrisbourne-retirementplanner]

Thank you Marian! I hope you enjoy my other content too.

[@anthonybusinelli5932]

Great video...a confusing topic superbly and simply explained. Thanks!

[@chrisbourne-retirementplanner]

Thank you Anthony I’m glad you thought so!

[@Kendoddsdadsdogsdead532]

Just watched and subbed....thank you for the advice. I hit 55 in 3 years and was thinking of taking 25 percent of my pot to then pay 10 percent overpayments on my mortgage for 5 years. Not sure if it's the right thing to do but it seems right to me!!

[@chrisbourne-retirementplanner]

Thank you. Yes, that will certainly create a tangible financial benefit.

[@garycroft8213]

This is by a long way the best UK pension planning video I've seen, cuts right through the complexity. Thanks

[@chrisbourne-retirementplanner]

Wow thank you Gary! Really great comment to receive. I’m glad it’s useful 👍🏼

[@ritz1369]

Awesome video Chris! I google searched this and clicked on many websites but was left bamboozled with their explanations, just couldn't get it. Thank you for explaining this topic so well :-)

[@chrisbourne-retirementplanner]

Thank you I’m so pleased you felt it was explained well. Really hope it helps you.

[@ianferguson3543]

You really need your pension for after you have retired so only take extra money out of the pension if you really need to and are willing to have less money to live off later. In the UK the state pension is paid late sixties dependant on your current age. When you get it any tax due actually comes off your main work pension if you have one.

[@fiddycaliber947]

Another complicated topic no one else is talking about on YT, that Chris covers in easily understandable language (and props haha!). Appreciate it fella.

[@chrisbourne-retirementplanner]

Cheers Scott and thanks for your ongoing support mate 👍🏼

[@davidnorth4703]

Got to buy some building blocks 😉 Excellent demonstration.

[@chrisbourne-retirementplanner]

Thanks David 👍🏼

[@iain8567]

Great video on what is a complex matter. FYI, taking income using UFPLS will also trigger the £4,000 money purchase annual allowance, and is mistake lots make. Don't dip unto your pension pot to help with the cost of living crisis until you understand the potential tax issues that are caused by the MPAA. The £4000 limit includes employer pension contributions, not just your own.

[@chrisbourne-retirementplanner]

Spot on Iain, accessing taxable benefits using any flexible withdrawal method (UFPLS or flexi-access drawdown) will trigger the MPAA.

[@redkite5799]

Brilliant explanations of stuff I was struggling to get my head round

[@simonsackett]

I'm sure what most people want is for someone to tell them what they personally could or should do with their pension(s) in the simplest terms. If you haven't just got a simple pension pot it makes things very complicated. I've got about 10k from when I contracted out of SERPS, more with a company I worked for 25 years ago, a closed pension pot with my current employer, and a smaller amount in the new pension plan they started! I could take some now but I've no idea what to take.

[@chrisbourne-retirementplanner]

Hi Simon. Well the pension that you and your employer are contributing to would be best remaining in situ. Generally speaking, smaller pots (less than £10k) are better to take first if you want to utilise for income because they do not trigger the MPAA (reduced annual allowance for contributions) or use any of your Lifetime Allowance.

[@simonsackett]

@@chrisbourne-retirementplanner Thank you very much for replying! So if someone ends up with a few pensions scattered around are they not all considered to be one pot by the tax man?

[@chrisbourne-retirementplanner]

@@simonsackett No not necessarily Simon... pots worth under £10k are considered 'small pots' and you can take up to three of these out as cash payments (25% tax free, the remainder taxable) without them impacting your annual allowance and lifetime allowance.

[@simonsackett]

@@chrisbourne-retirementplanner Many thanks. If I set out what I have in the way of pensions would a financial adviser be able to easily advise on what I could/should do with them? What sort of costs would be involved? I've never needed financial advice before :o)

[@chrisbourne-retirementplanner]

Yes an adviser should be able to do that Simon. If your pots are small though you may have to consider whether the value can exceed the minimum fees.

[@MrRobjones70]

As a 53 yr old this year, this was a great video to explain what I need to do when I reach 55. As an ex British steel pension employee, we have a distinct lack of trust around the pension business. 👍👍

[@chrisbourne-retirementplanner]

That’s great to hear. Thanks for your comment it’s much appreciated 👍🏼

[@manishrana6]

Blocks example made it so easy to understand.. brilliant

[@chrisbourne-retirementplanner]

Thanks so much. Really glad they did the trick!

[@steven-backpack-cycle]

Excellent information Chris.....straight to the point !!

[@chrisbourne-retirementplanner]

Many thanks Steven really appreciate that 👍🏼

[@Prasutagucaster]

Thanks for cutting through it. I’m a fan

[@chrisbourne-retirementplanner]

Thank you!

[@303008884]

This video is an absolute gem ! thanks for sharing

[@chrisbourne-retirementplanner]

Thank you glad it’s helpful!

[@nigelpalmer3892]

Very clear and concise advice, thank you.

[@chrisbourne-retirementplanner]

You’re very welcome.

[@chrislow123]

What a great video. Clear, concise and very informative. Do you have a website for 121 financial advice?

[@chrisbourne-retirementplanner]

Thanks Chris that’s much appreciated. You can find my contact details in the About section of my channel 👍🏼

[@eddvanlife7396]

Bugger no extra savings with a Forces Pension paying above the 12.5k Threshold. Still a great explanation thanx.

[@chrisbourne-retirementplanner]

Thank you!

[@hoddersportsthehomeofquali4340]

Thanks Chris - really helpful explanation. I am pretty pleased by the current flexibility that the pension rules allow and through the use of a mash up of ISAs, Shares, Tax Free Cash can get a decent retirement income with very little tax to be paid. Tanks for the clear steady explanation - I liked the use of counting blocks (despite being an accountant!) visually I find it so much easier to grasp. Keep up the good work.

[@chrisbourne-retirementplanner]

Thanks very much. I'm really pleased the blocks made it easier to digest - it can be a stodgy subject!

[@minimad8793]

nearly a year old this video but very relevant to most. thanks Chris. Not sure how it would work with defined benefit/final salary planning though. will have to check out your other videos to see if this is possible.

[@chrisbourne-retirementplanner]

Thank you! With DB pensions you'll find that your Personal Allowance is used up (at least in part) by that, so it's not possible to be quite as tax efficient. It is still possible however to just use tax free lump sum (no income withdrawals) to supplement the DB income until all lump sum has been taken.

[@chrismoore7569]

Thank you very well explained. The examples used all assume growth in funds retained in pension. In a zero growth scenario all options would be identical from a tax perspective. In a loss scenario the tax free cash would be less. Have I understood this correctly, Thank you.

[@chrisbourne-retirementplanner]

That is absolutely correct Chris.

[@porschecarreras992cabriole8]

This is really good. I have heard about UFPLS but didn’t know you can take more than 25% tax free that way. This would only work if you don’t need an initial tax free lump sum which most people do take

[@chrisbourne-retirementplanner]

Hi there. Thank you! In my experience now, far fewer people take all of their lump sum in one chunk like they used to.

[@tonyharper5604]

Really clear and helpful explanation. Thank you.

[@chrisbourne-retirementplanner]

Thank you Tony. It’s always good to know the explanations have helped.

[@peterbattle2116]

Thank you very much for this excellent video. Pensions are incredibly complicated and speaking as a 67 year old that has yet to crystallise his pension - this helps to shine the light on how to best cope when the time comes for me to draw down on it. Peter.

[@chrisbourne-retirementplanner]

Thank you Peter. I'm really pleased that it's helpful to you.

[@madmuppet8039]

This couldn’t have come at a better time for me, my transfer value has just gone through and I need a lump sum of 130k to help towards purchasing a property, (I’m stuck in the rental trap at 55 due to a divorce) Seeing as i need to purchase outright and don’t want mortgage debt at my time of life, I cannot really see the benefits of using your method, nether the less, it was very clear and concise and well put into layman’s terms, very easy to understand and I will use it for future withdrawals, thank you Chris

[@chrisbourne-retirementplanner]

Thanks Andy! Yes, sometimes circumstances dictate that other methods of withdrawal are more suitable. I’m glad the information is helpful to you though 👍🏼

[@mangalsingh4036]

Hi Chris, Can you do a video on CGT and the benefits of using your SIPP, to minimise tax bill.

[@chrisbourne-retirementplanner]

Hi Mangal. I will definitely be doing some tax planning videos in the near future. I will posting a community post shortly to explain some of the content I’m planning and I will be asking for suggestions on things viewers want me to cover, so feel free to get involved.

[@malcolmlowe9722]

Well explained Chris with some great examples. Really appreciated as it helps me consider what I need to do.

[@chrisbourne-retirementplanner]

I'm glad to hear it was helpful Malcolm. Thanks for watching 👍

[@grahamscothern4319]

Thank s Chris that really helps to explain how that works 👍 Cheers Graham

[@chrisbourne-retirementplanner]

Please Graham. Glad it helped 👍🏼

[@thedanielthomas]

One of the best personal finance videos I've ever seen.

[@chrisbourne-retirementplanner]

Wow thank you so much Daniel. It really does mean a lot to receive comments like this.

[@peterhughes1827]

HI Chris, do you have a videos re the bond crash this year and what you can do?

[@chrisbourne-retirementplanner]

Hi Peter. One of my latest videos (Don’t Hold Cash!) discusses this topic.

[@peterhughes1827]

@@chrisbourne-retirementplanner Thanks I'll have a look

[@davekelly7184]

Hi Chris.... Finally, somebody who knows what they are talking about. A true Fiduciary and very knowledgeable individual. So, here is my situation. 64 old male still working. My Pension Pot is between 250,000 and 350,000. This is split in to two parts, part 1, my Pension Pot. (100,000 of which 84,000 is Crystallised allowing me 12 drawdowns of 1,750.00 per month over 12 months. The second part I have is around 200,000 which I have invested in stocks and shares. Would you be kind enough as to advise me the best way forward so as to make the best use of tax free cash etc please?

[@chrisbourne-retirementplanner]

Hi Dave. Thank you that’s very kind! Have you reached out on my channel email (see About section)? If so, I’ll be able to respond properly but am currently working through enquiries.

[@davekelly7184]

@@chrisbourne-retirementplanner Hi Chris... Thank you so much for coming back to me so quickly, I feel like I have discovered the Holy Grail. I will as you suggest, contact you through e mail in the coming days so as to explain in more detail. Speak soon.

[@derekcravenl1953]

Wish all financial advisors were able to explain the process as clearly.

[@chrisbourne-retirementplanner]

Very kind of you to say Derek. Thanks for your comment 👍🏼

[@SMarkGee]

helpful and sufficiently brief, thank you Chris

[@chrisbourne-retirementplanner]

Thanks Mark much appreciated 👍🏼

[@mohamedpatel3978]

Excellent video. One to keep watching as a reference point.

[@chrisbourne-retirementplanner]

Thanks Mohamed I’m glad it will be useful 👍🏼

[@mollyt4639]

Gosh it’s much more complicated than most of us knew!

[@chrisbourne-retirementplanner]

Hi Molly. Hopefully the video helps simplify it a bit!

[@peterdelf]

This is brilliant. Well explained.

[@chrisbourne-retirementplanner]

Glad it’s helpful Peter.

[@deanstringer7748]

Thanks Chris, very intuitive video.

[@chrisbourne-retirementplanner]

You’re very welcome Dean thanks for watching 👍🏼

[@myob1kenobi]

Very good stuff Chris, never would have thought of this, big thumbs up 👍👍👍👍👍👍

[@chrisbourne-retirementplanner]

You’re welcome Mike! Glad it’s useful 👍🏼

[@glynfranks1616]

Hi Chris, great presentation and clearly presented, approaching 60 years old ,was thinking of clearing our remaining mortgage with 25% from pension, reading elsewhere most advice is to leave it alone,.what your views

[@chrisbourne-retirementplanner]

Hi Glyn. There isn’t a right or wrong answer to this question as it depends on your own circumstances. Generally speaking, leaving your pension alone and letting it grow for as long as possible is a good thing to do. Taking the tax free lump sum on a monthly basis also allows for a more tax efficient income. It’s important to keep an eye on interest rate movements though and how much your mortgage is costing in relation to how much your pension is growing.

[@glynfranks1616]

Thanks Chris, our variable mortgage as had 5 increases to present Feb 2023 , with interest rate a lot higher than pension current growth like many others with UK economy.paying our mortgage of will release £4500 annually ,which some of this money would contribute to existing pension

[@jonclark9524]

Excellent video learnt some really useful stuff. Thank you

[@chrisbourne-retirementplanner]

Thanks Jon I’m glad it helped 👍🏼

[@drjanemccartney]

Thanks, I’ll have to watch again a few times to get it, my kind of graphics :)

[@chrisbourne-retirementplanner]

No worries! Glad it's helpful.

[@essentialvital2696]

Thanks that’s helped a lot, what if you only have £8000 in a nest pension fully retired and want to take it all out would this be a problem?

[@chrisbourne-retirementplanner]

Hi there. That would certainly be possible. The first 25% of the withdrawal would be tax free and the remaining amount would be subject to tax at your applicable income tax rate.

[@robertrennie-cm4fi]

Hi chris very informative video however in your analogy you am I correct in saying you have assumed that the uncrystalised pot has grown by 25% this would take quite some time to grow by that amount therefore I dont believethis to be an vernight increase of 30% against 25% tax free amount but admitably better but not the amount in the used in the video

[@chrisbourne-retirementplanner]

Hi Robert. Yes those were just example figures, and that kind of growth wouldn’t be achieved overnight like you say. It’s only to show how the mechanics work really.

[@waynekerrr9027]

I'm 60, and need to know where I can get some decent advice for my private pension planning

[@davidlee8115]

Chris. Great video. Think you should have pointed out what happens to your pension fund when you die. Eg if you take the annuity option you lose all the money when you die, nothing for your heirs. Quite critical I suggest when making your initial choice.

[@chrisbourne-retirementplanner]

Hi David. There are value protection and guaranteed payment options that can be added to annuities, but this video focused more on flexible income options and how to maximise tax free lump sum.

[@nigelduckett1289]

Wow, my heads spinning but I'm sure I will understand it after another watch, I thought like most people 25% was the maximum I could take tax free but no one had ever explained the term crystallisation to me before or how it works.

[@chrisbourne-retirementplanner]

Glad it’s useful Nigel thanks for watching.

[@broadleyboy2]

The assumptions assume the pot grows. If it falls the amount of the tax free cash will fall with it and so you would end up with less than 25% of the initial notional value. Good video apart from missing that if.

[@martincloudsdale7803]

Thanks Chris for this fantastic video it's ever so helpful cheers.

[@chrisbourne-retirementplanner]

Really pleased Martin, thank you.

[@matthewbellamy486]

Really helpful and very well explained. Subscribed!

[@chrisbourne-retirementplanner]

Thank you! I hope you find other videos useful too.

[@kyriacoskoiza6944]

Thanks, very useful information. Would you know how to locate lost pensions..?

[@chrisbourne-retirementplanner]

Hi there. Yes Pension Bee offer this service I believe, but if you typed that enquiry into Google there is also a Gov.uk page that can help with this.

[@minttea4972]

Was wondering where the 25% ends - if I took half the tax free lump sum as it stands, would the remainder create more tax free lump sum? And here you are - explaining very well the answer I needed! Thank you ever so much for taking time to do this for us. Very best of luck to you!

[@chrisbourne-retirementplanner]

You’re very welcome Lorien! Thanks for your comment.

[@terrybrown3486]

Hi Chris, I guess there will now be a record of tfc taken and only able to take the maximum fixed amount now. They remove complexity and add it back in.

[@janewhitzend688]

Wow. Brilliant, I don't totally get it but can understand the options potential. I probably need to watch it a few times. Never knew this was possible. We are hoping to retire in 5 years and need to drawn income from various sources, including pensions for the period until our state pensions kick in. So this was very helpful.

[@chrisbourne-retirementplanner]

Sorry Jane I missed this one! That’s great - I’m always always happy to hear when the info in my videos is helpful 😊

[@acornultraantiques5330]

Very interesting thanks one to watch again. One thing i wondered was do i still pay national insurance on all monies taken (£12:500 probably per year) from retiring at 55 until 67? So 12 years thanks

[@chrisbourne-retirementplanner]

Thank you. National insurance is not paid on pension income.

[@acornultraantiques5330]

Ahh thanks that’s interesting :)

[@50450720]

Cheers Chris . That was very helpful.

[@chrisbourne-retirementplanner]

You’re welcome 👍🏼

[@willh5061]

How do I crystallise my remaking pension in a self managed SIPP of stocks and shares though?

[@chrisbourne-retirementplanner]

Providing the SIPP offers all of the options outlined then the same principles apply. If unsure though you must seek advice.

[@josephmurray2234]

Like it a lot quick and clear

[@SuperMastaba]

Chris, I have to say thank you so much. Having watched other videos on this topic and I couldn’t get my head around. Yours is clear and simple. I understood it straight up. My question is: what if my pension pot is £100k and I need £15k then 2 years later £10k? How will that work with your example?

[@chrisbourne-retirementplanner]

Hello Guy. Apologies for the delay I seem to have missed this one! To release £15k of tax free lump sum you would need to crystallise £60k of your pension pot. To then release £10k lump sum afterwards, you would need to crystallise £40k of your pot. Your pot may have grown to more than £40k by this time (although not guaranteed), so you could either take more lump sum at that time or later.

[@SuperMastaba]

@@chrisbourne-retirementplanner thank you so much! 👍🏽

[@tonyh1460]

Thanks Chris, excellent explanation, I triggered MPAA in 2015 by taking 25% that was taxed, I actually wanted it all as the tax free option but I didn't appreciate the MPAA aspect and let it go Too late now of course. Expensive mistake !! I've been told by Pension Wise I can still have 25% tax free lump sum anytime I like, so that's something at least

[@chrisbourne-retirementplanner]

Hi Tony. Ah yes that’s a painful one that I’ve seen happen before. There should be better warnings to people if they are doing things with providers directly.

[@tonyh1460]

@@chrisbourne-retirementplanner thanks Chris, I cheer myself up with the thought that I used it as a deposit for a buy-to-let flat which was £133k in 2016, and is now £180k, plus a little rental surplus income along the way, a small crumb of comfort. What you lose on the swings, you gain on the roundabouts 😀

[@johnh4563]

Excellent thanks 😊