Triviality - Pension

honey2510

Hello

My Mum has reached retirement age and was hoping to cash in her pensions but they add up to £17,400 which is £900 more than the £16,500 allowed.

Does anyone know if she can cash in some of the pensions or does she have to take them all as part lump sum and then the rest as an annuity? She has 3 small pensions which add up to the £17,400.

Thanks

EdInvestor

honey2510 wrote: »

My Mum has reached retirement age and was hoping to cash in her pensions but they add up to £17,400 which is £900 more than the £16,500 allowed.

This figure will rise next April. What kind of pensions are they?Judging on the way the markets are behaving she may well find they are dropping in value at the moment. If so, combined with the rise in the allowance next year, you may well find she can cash the pensions in if she just waits a few months.

Does anyone know if she can cash in some of the pensions

No she can't.

MikeJones_2

I can think of one possible way that might work.

Can you give us a bit more detail. What type is each pension (e.g. personal pensions) and in what funds are they currently invested (with-profit, managed funds cash)?

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

honey2510

Many thanks for the advice. I think one of the pensions is a stakeholder pension but I'm not sure about the other 2 so I'll find out

What type of pensions can you not cash in?

EdInvestor

All can be cashed in.But you don't have control over how all are invested, so the strategy I mention might not work with them all.

dunstonh

If the limit is close,then it is possible to bring it down and do triviality.

honey2510

dunstonh wrote: »

If the limit is close,then it is possible to bring it down and do triviality.

How would she do this? Would she need to shop around for someone to sell it too. Apologies I have no idea how all this works.

Thanks
Tracy

MikeJones_2

The devil is in the detail.

RPSM09104910 - Technical Pages: Member benefits: Lump sums: Trivial commutation lump sum: When benefits may be commuted

I would suggest she seeks the help of an IFA who should be able to assist.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.