'Stop and think': The order of taking benefits is still important

Now that the lifetime allowance (LTA) is a fading memory, for many the order of taking benefits is no longer an issue. Taking a pension with no pension commencement lump sum (PCLS) in the past would have used up LTA, which would then have reduced your PCLS going forward, but this is no longer an issue. If you crystallise pension benefits without taking PCLS, you don't use any lump sum allowance (LSA) or lump sum and death benefits allowance (LSDBA). Under the LTA rules the maximum PCLS was 25% of the remaining LTA, or your applicable amount which was 25% for most. Under the LSA, it's ...