This question implies that they only want their tax free cash at this stage, hence the wish to transfer the balance to a new pension. It is certainly possible to do this, but it is VERY IMPORTANT that you do everything in the right order.
Without knowing exactly what type of pension policy a customer currently holds it is not possible to give a personal answer, but if like the vast majority of people you hold a private personal pension then you will most probably need to do things in reverse order.
In other words you would need to transfer your entire pension to a new pension provider first and then take the tax free cash, and not in the order implied in the question.
The reason for this is that private personal pensions require you to take both your tax free cash and an income in the form of an annuity if you ask them to pay you your tax free cash. Even if you exercised your Open Market Option, the new provider would also have to pay you an income immediately.
To achieve your goal you would need to transfer to a special pension contract that allows you just to take the tax free cash and leave the rest until later. To be able to do this you must not take the tax free cash until it is transferred to the new provider, as if they are unable to pay the pension lump sum, they can’t accept the transfer.
If you haven’t guessed it yet, that is exactly what we do. The service is efficient and quick and we do all of the work for you. The first thing to do is complete our simple on line quote form. With your quote we send you a FREE information pack that explains in very simple language how this transaction will work.
We make it easy for customer to take a tax free lump sum from a pension fund, while leaving the rest of their fund invested until they are ready to retire.
We explain everything in simple, easy to understand language. This enables the customer to make informed decisions about the action they take.