When you took the full 25pc from both of your plans in 2016, you crystallised the entire value of those pensions and fixed the amount of tax-free cash available from them. You can withdraw income from the drawdown funds whenever you need it, but those withdrawals will normally be subject to income tax.

Your third pension pot is fully uncrystallised, meaning you’ll be able to take further tax-free cash from it. This will generally be limited to the lower of 25pc of the funds being accessed at that time and your remaining lump sum allowance

Money Helper

If you have uncrystallised pension pots either 100% or part crystallised any earned dividends add pro rata to you uncrystallised pension pot, so if you intend to retire on your own Snowball it could pay to leave part of your fund uncrystallised.

The SNOWBALL