Your scheme rules will determine the date by which you have to
take your pension benefits.
If your scheme allows you to take a pension commencement lump
sum, for this to be paid to you free of income tax entitlement to
it must arise before you reach your 75th birthday. Any lump sum
paid to you where entitlement arises on or after your 75th birthday
will be treated as an unauthorised payment and you will be liable
to a tax charge. There is more information on when entitlement
arises at
RPSM11102050 and
RPSM11102055.
After age 75 there are stricter rules on how a pension must
be provided and this is dependent on the type of scheme you are in.
For further information see
RPSM09100200 and
RPSM09100380.
Any benefits which have not been taken by your 75th birthday
will be tested against the then remaining
lifetime allowance and will be deemed to have been
paid at that point, whether or not they are actually paid. How
these benefits are tested will depend on the type of benefits you
are entitled to. Your
scheme administrator will be able to tell you
this.
| Glossary RPSM20000000 |
