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Pensions crystallisations and withdrawals

Here we look at some tax considerations when crystallising pension benefits and making withdrawals.

Review tax deducted on pension withdrawals – are tax reclaims necessary?

Except for tax-free lump sums, money withdrawn from pensions is taxed under the Pay As You Earn (PAYE) system. Depending on whether the correct tax code has been applied and/or the timing of the withdrawals, clients may be over or under paying tax on these withdrawals. Our Pension Summary report shows the total income tax paid on a client’s pension drawdown account for the current tax year along with the tax code held by Fidelity. 

Review regular crystallisations and/or taxable payments

The standard personal allowance for 2023/24 is £12,570 and so, depending on other sources of income, it may be appropriate for pension clients aged 55 or over to make taxable withdrawals in order to maximise this allowance.

Next steps

  1. Review the income being paid to relevant clients, as required
  2. Where appropriate, set up a regular crystallisation with taxable income via our new Phased Drawdown functionality.

More on our Phased Drawdown facility

Next steps

Run your Pension Summary report – select 'Firm' from the left-hand menu of our Client Management facility followed by 'Reporting Services'. You'll then be able to select the report which will be ready within 24 hours. 

If you need more help with using the Pension Summary report, you may find it useful to download our user guide.


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