Assuming that you are over 55 years old, in theory there is no problem with you having your scheme set up in such a way that you take the tax free cash of 25% and then leave the rest untouched for a number of years. Some pension companies simply don’t have the systems to be able to do this so they may have told you that it was not possible to do so with them. If so then you should look at the options of another company but one of the key issues is the cost and how flexible it will be for you in the future. Also you’ll need to consider the tax implications particularly with respect to death and inheritance tax. Whilst none of this is overly complicated it’s vital that it’s done correctly and that you fully understand the pros and cons of setting up a scheme in such a way.

Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please go to http://www.unbiased.co.uk

Robert Forbes, IFA, Plutus Wealth Management LLP.

Plutus Wealth Management LLP provides bespoke personal financial advice and wealth management for a diverse range of clients, specialising in those new to financial planning. www.plutuswealth.com