Can I Still Have Tax Free Cash After Age 75

Published / Last Updated on 20/03/2019

Can I still take tax free cash after age 75?  Talk to different organisations and you get different answers.

The definitive answer:

HMRC Tax Law = Yes, whether before or after 75 it is legal to still access tax free cash if your pension scheme offers the facility

Reality:

Pensions schemes MUST have adapted their scheme rules to allow for new pension freedoms under flexible drawdown if they are able to offer tax free cash after age 75.

If you have an old pension scheme (that has not amended its scheme rules) or an old style ‘capped’ drawdown plan – you may need to transfer/convert to a scheme that can before age 75.

There may also be inheritance tax advantages by not being forced to take your tax free lump sum before age 75 and leaving it in the pension pot uncrystallised.



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