Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • martinthebandit
    • By martinthebandit 26th Nov 17, 10:41 AM
    • 3,318Posts
    • 5,623Thanks
    martinthebandit
    Three small old pension pots
    • #1
    • 26th Nov 17, 10:41 AM
    Three small old pension pots 26th Nov 17 at 10:41 AM
    I have three old pension pots with three different providers non of which have more than a couple of hundred quid in them.

    I am 61 and in receipt of a reasonable pension and no longer employed so Iím not currently paying into one.

    My question is what should (or can) I do with the three small pots?
    Politics -
    from the words Poli, meaning many
    and tics meaning blood sucking parasites


    (thanks to Kinky Friedman (or Larry Hardman) for the quote}
Page 1
    • xylophone
    • By xylophone 26th Nov 17, 11:20 AM
    • 23,666 Posts
    • 13,791 Thanks
    xylophone
    • #2
    • 26th Nov 17, 11:20 AM
    • #2
    • 26th Nov 17, 11:20 AM
    no longer employed so I’m not currently paying into one.
    Even with no relevant earnings, you could still pay up to £2880 into a pension and receive tax relief of £720.






    https://www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Taking_small_pensions_Detailed_SPOT008_V1.5.pdf
    • martinthebandit
    • By martinthebandit 26th Nov 17, 1:31 PM
    • 3,318 Posts
    • 5,623 Thanks
    martinthebandit
    • #3
    • 26th Nov 17, 1:31 PM
    • #3
    • 26th Nov 17, 1:31 PM
    Even with no relevant earnings, you could still pay up to £2880 into a pension and receive tax relief of £720.






    https://www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Taking_small_pensions_Detailed_SPOT008_V1.5.pdf
    Originally posted by xylophone
    Thanks, Iíll look into that, are there any other options for me to consider?
    Politics -
    from the words Poli, meaning many
    and tics meaning blood sucking parasites


    (thanks to Kinky Friedman (or Larry Hardman) for the quote}
    • xylophone
    • By xylophone 26th Nov 17, 1:46 PM
    • 23,666 Posts
    • 13,791 Thanks
    xylophone
    • #4
    • 26th Nov 17, 1:46 PM
    • #4
    • 26th Nov 17, 1:46 PM
    The fact sheet linked above explains what can be done with accessing these small pots from each of the providers.

    Otherwise you might consider opening a SIPP with HL say and making a £2880 contribution and also asking HL to consider a transfer in of the small pots?

    You might wish to continue to contribute your £2880 until age 75.
    • Coco's mum
    • By Coco's mum 30th Nov 17, 12:08 PM
    • 1 Posts
    • 0 Thanks
    Coco's mum
    • #5
    • 30th Nov 17, 12:08 PM
    • #5
    • 30th Nov 17, 12:08 PM
    Hi,

    Bit of a newbie here, so apologies if this is a stupid question - what's the difference between this (trivial commutation) and drawing your small pensions down?

    Thanks
    • Linton
    • By Linton 30th Nov 17, 12:49 PM
    • 8,636 Posts
    • 8,610 Thanks
    Linton
    • #6
    • 30th Nov 17, 12:49 PM
    • #6
    • 30th Nov 17, 12:49 PM
    Hi,

    Bit of a newbie here, so apologies if this is a stupid question - what's the difference between this (trivial commutation) and drawing your small pensions down?

    Thanks
    Originally posted by Coco's mum
    1) If you drawdown money beyond the 25% tax free lump sum the maximum annual contribution into your DC pensions whilst getting tax relief is reduced from £40K to £4K, Trivial commutation does not affect the £40K limit.

    2) Many pension schemes do not support drawdown but will allow trivial commutation.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

156Posts Today

1,950Users online

Martin's Twitter
  • Have a lovely weekend folks. Don't do anything (fiscally) that I wouldn't do!

  • RT @thismorning: With his last deals of the year, @MartinSLewis wishes us all a 'very merry Christmas, a happy Hanukkah and a wonderful and?

  • RT @stoneygran: @MartinSLewis I furtively used a pub toilet last night before getting on the bus and felt really guilty!

  • Follow Martin