How does preservation fund withdrawal work with two-pot (prior to retirement)?

Preservation funds allow members to make one full or partial withdrawal before retirement age (early retirement age 55). However, the rules regarding the savings pot and additional withdrawals can be a bit nuanced:

• Savings Pot Withdrawal: Under the current two-pot system, a member can make one withdrawal per tax year from the savings component. Once a member has taken this withdrawal there won’t be any further withdrawals available as no new contributions are being invested. If the member only withdraws a portion of their savings pot, they can withdraw the other portion(s) in subsequent years.
• Once-Off Vested Pot Withdrawal: Members are also permitted to make one full or partial withdrawal from the vested pot in the preservation fund before retirement age. This is separate from the annual savings pot withdrawal.
• Retirement Pot: This pot remains invested and can only be accessed at retirement.

Whether a member has withdrawn from the Pension or Provident Fund prior to the transfer to the Preservation Fund has no impact on the rules applicable in the Preservation Fund, this is a separate product.