Neil McKellar
Joined: 10/15/2024
-
Pension Lump Sum Recycling
Yes I have read the guidance, but it is not entirely clear. I would just like to check my understanding. Recycling only relates to using the tax free lump sum? Where you receive a pension from one scheme, are still working and contributing to a second scheme. The taxable pension income will free up taxable salary to make significantly higher additional contributions to the second scheme. I don't think that this is recycling as the first lump sum is not funding the AVC. It is the "significantly higher contributions" that worry me as the guidance repeatedly says that anything over a 30% increase is an issue.