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Pensions - my husband and I are 67. He has a private pension.

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Pensions - my husband and I are 67. He has a private pension. We cashed 25% two years ago. The remainder is held with MetLife in cash. Will we be eligible to withdraw as we wish after April next year?
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question

I am afraid you have already had the 25% tax free lump sum you cannot have a further draw down on your pension. This is for those who are yet to reach the age of 55 and /or are due to retire and are approaching the pension position for the first time.
You do not indicate whether the money with Metlife is a purchased annuity - if so, then you are locked into this for life

I am sorry the news is not better

Thanks

Sam





Customer: replied 3 years ago.
The pension is in cash with MetLife with a savings account interest which is re-invested in the pension. As we understand it, this is not an annuity and we deliberately chose not to purchase one. Does this change the possibilities?
Expert:  Sam replied 3 years ago.
Hi

Thanks for your response

No, you cannot withdraw any more from the main pension pot, as you have already done so - and the new legislation is for those coming up to that position.
It was to the remainder of the pension pot (so the 75%) to which a reference to the annuity position was being made - but you cannot withdraw any further funds.

Thanks

Sam
Customer: replied 3 years ago.
Thank you for this. However, I'm still not sure about the options. Presumably we can draw down on a regular basis. I understand these rates will also alter?
Expert:  Sam replied 3 years ago.
Hi Jennifer


Thanks for your response

Not for you no - as you are already passed the process of having options open to you. Your only options are what you do with the 25% you have already withdrawn - so for example

A higher ISA has been proposed (up to £15,000) - for those saving - and a new “Pensioner Bonds” will pay enhanced interest rates to savers aged over 65

But for the pension itself (that remains - the balance of the 75%) there is nothing that will benefit you as you have already activated the down draw of 25% permitted -
The changes are for those that have yet to activate anything on their pension pot - and are 60 or over.
So if their total pension pot was worth less than £30,000 they could free it all up with the first 25% tax free and the remainder considered for tax.
Or those with a capped down draw could take 150% rather than 120% of that set aside in the downdraw fund
Or if it was a capped drawdown and have at least £12,000 a year of "secure pension income", including the state pension and annuities in payment, you can move to "flexible drawdown" which gives you complete freedom over how much you take out of the pension pot.

Thanks

Sam


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