Tax free lump sum @ 50, is the 25% calculated on the single pension fund or can you take into account other pensions you have

Hi all, I have 2 pensions, both DC with private employers. The older fund, pensions 1, has 350k and I also have some funds in the current employer fund where I am still employed. I am 51.

I need some liquidity to buy a home and am struggling with any financing so thought I could take some cash as a tax free lump sum from Pension 1 and use this to help fund a property purchase. Question is will the 25% allowance be calculated only on the value of pension 1 or can I take into account my current pension, Pension 2, and increase the cash lump sum taken cash free from Pension 1?
If it is only pension 1, I am currently limited to 350k x 25%, 87k. The lifetime limit is 200k.

Each 25% is calculated on each scheme. So you can only take the €87,000 now and 25% of Pension 2 later. The €200,000 limit only comes into play if the sum of the lump sums from Pension 1 + Pension 2 exceed €200,000. Then you'll pay tax on the excess over €200,000.

There's a second method of calculation of the lump sum on a DC scheme which is based on your salary and service with that employer. It can sometimes produce a lump sum of >25% of the fund, but you're roped into buying an annuity with the residual fund. Ask the scheme broker to run the calculations for you.

Thanks Dave, that’s really helpful.