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TonyTax
TonyTax, Tax Consultant
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Can I take out a sum of money from my pension which is - after

Resolved Question:

Can I take out a sum of money from my pension which is - after tax is £2,600 approx per month from my teaching career. My state pension is additional .
I already had a tax free lump sum on my retirement?
AH
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

If you are referring to a Teachers' Pension, I'm afraid the answer is no. You were in a defined benefit or final salary scheme where the amount of your pension is based on your final salary and the number of years of service. The changes to the way people will be able to access their pension savings in future which were recently announced only apply to what are called defined contribution pension schemes where the amount of pension is based on annuity rates and the value of the pension fund.

It's possible that you may have paid additional voluntary contributions or AVCs along with your regular pension contribution and it may have been possible to access that part of the pension fund related to the AVCs you paid under the new rules but, given that you have already had your tax free lump sum and you are drawing your pension, I doubt you will be able to change anything now. It might be worth a call to your pension payer to clarify your position.

You can read about the different types of pension schemes here and here.

I hope this helps but let me know if you have any further questions.

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