Robbie62

Are there any circumstances where a Redundancy Sacrifice payment is made into a DC pension and sometime after that, the 25% tax free lump sum (or a UPFLS) is taken, could be considered to be contributing to pensions recycling? I'm thinking of a situation where someone is approaching retirement, they have increased the payments into their DC pension and then are offered a redundancy package with a leaving date in 18 months, and at that point the employer will give the employee £30,000 tax free plus the remainder paid into their pension. Are there any circumstances where that redundancy sacrifice payment will be ADDED to the increased pension contributions, which in combination, may take them over the 30% limit? Or are redundancy sacrifice payments never considered as contributing to recycling?