How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4546
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
Type Your Finance Question Here...
Rakhi Vasavada is online now

I have a small pension from Prudential, it pays me £114 a month,

Customer Question

i have a small pension from Prudential, it pays me £114 a month, can i draw a lump sum from this pension?
Submitted: 2 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 years ago.
Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

YES.. Certainly you can. As per the new rules, you will be able to take out 25% of your pension pot tax free. The new legislation will allow the rest of the fund to be removed either in stages or all at once, and this will be taxed at a marginal rate. For example, if you have a salary of £35,000 and remove £15,000 of your pension in addition to the tax-free portion, you will pay higher-rate tax. However, if in the same circumstance you removed £5,000, you would pay basic-rate tax.

I am sure this would help. I wish you good luck.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards