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  • FIRST POST
    • 56cheffy
    • By 56cheffy 10th Oct 16, 7:18 PM
    • 451Posts
    • 140Thanks
    56cheffy
    Cashing in a pension
    • #1
    • 10th Oct 16, 7:18 PM
    Cashing in a pension 10th Oct 16 at 7:18 PM
    I have a couple of pensions, one is valued at just £11000.
    I understand I can transfer it to the other one if I want, but can I cash it in?
    Thanks
    This post was created in an area that may contain nuts!
Page 1
    • dunstonh
    • By dunstonh 10th Oct 16, 7:28 PM
    • 85,120 Posts
    • 50,137 Thanks
    dunstonh
    • #2
    • 10th Oct 16, 7:28 PM
    • #2
    • 10th Oct 16, 7:28 PM
    How old are you?
    You cannot crystallise pensions if you are aged under 55 (some caveats apply).

    If you are over 55, you can but there are consequences and tax issues to be wary of.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • 56cheffy
    • By 56cheffy 10th Oct 16, 7:31 PM
    • 451 Posts
    • 140 Thanks
    56cheffy
    • #3
    • 10th Oct 16, 7:31 PM
    • #3
    • 10th Oct 16, 7:31 PM
    I'm 60 and pay tax at basic rate if that helps.
    I undrstand you can take up to 25% without tax but thought I saw somewhere that different rules apply on small pension?
    Thanks
    This post was created in an area that may contain nuts!
    • LHW99
    • By LHW99 10th Oct 16, 8:16 PM
    • 520 Posts
    • 354 Thanks
    LHW99
    • #4
    • 10th Oct 16, 8:16 PM
    • #4
    • 10th Oct 16, 8:16 PM
    As long as it's not a deferred final salary scheme, or has valuable guarantees, you would probably be able to.
  • jamesd
    • #5
    • 10th Oct 16, 10:22 PM
    • #5
    • 10th Oct 16, 10:22 PM
    There is a different rule for pension pots of up to £10,000 but it doesn't affect income tax. Taking any part of the 75% of a pension pot that is taxable using flexible drawdown would normally trigger a reduction in the annual allowance for pension contributions from £40k to £10k. For three pots of up to £10k each per lifetime you can take the money without this reduction. All of the money in the pot has to be taken. You can transfer before or after taking the money to get within the limit or consolidate to use as few small pots as possible.
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