4.7.2 Cash Sum at Retirement
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At retirement, an individual may choose to exchange part of his personal pension for a tax free cash sum of up to 25% of the fund value (excluding any element relating to the contracting out rebates). A lump sum of 3 times the residual pension can be taken from an RAC tax-free
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Where money is transferred from an occupational scheme to a personal
pension, it is necessary to obtain a certificate from the trustees
of the transferring scheme, indicating the maximum tax free cash
sum which would have applied had the transfer not taken place. Without
such a certificate, tax free cash from the transferred fund is not
available.
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