Pension Drawdown

Spud50

Registered User
Messages
27
i am currently retired but living off savings , I am 58 and want to draw down my TFLS next year from my DC pension pot at 59 and was wondering if I take the max lump sum, can I then live off that for a few years and not draw down on my ARF till I’m 61?

Or does taking the lump sum automatically mean I have to start regularly drawing a pension from the ARF also.
 
I’m not sure if you can do that, someone else may have an answer, but you can split your DC pot into multiple PRSA’s and then retire one at a time, so you’d take a smaller TFLS from one of the PRSA’s and then an income from the remainder, aiming to exhaust it over your 3-year period.
 
Thanks for that nugget, hadn’t seen 61 before but reading the relevant 790D act section now I see how it is 61.

3) This section applies for any tax year in which an individual—

(a) has a relevant fund, and

(b) is aged 60 years or over for the whole of that tax year.

Seems like this could be important for those calculating early retirement options, especially versus the multiple PRSA idea that I would have said previously is the best option. Retiring the year you turn 58 for example but not having to to take a distribution (or pay the tax) for basically 3 full years until the year you turn 61 could be quite a good option for some. Maybe especially those of us with birthday v early in the year.
 
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