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pensions insufficiant funds

what are rules on taking pension pot when less than £15000

Comments

  • dunstonh
    dunstonh Posts: 120,359 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If you are aged over 60 and ALL of your pensions are valued at less than 1% of the lifetime allowance (which would be £16,500 currently) then you are able to take the value as a lump sum minus a tax penalty.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    dunstonh wrote: »
    If you are aged over 60 and ALL of your pensions are valued at less than 1% of the lifetime allowance (which would be £16,500 currently)

    ...excluding state pension...

    ....then you are able to take the value as a lump sum minus a tax penalty.

    It's not a penalty, it's just the normal tax you would pay on the 75% of the fund which you would otherwise take as income.
    Trying to keep it simple...;)
  • Tibbledom
    Tibbledom Posts: 433 Forumite
    A good explanation of the triviality rules can be found on the Pensions Advisory Service website

    http://www.pensionsadvisoryservice.org.uk/personal_and_stakeholder_pensions/triviality/index.asp

    For completeness see also

    http://www.pensionsadvisoryservice.org.uk/news/articles/20080313.asp
    MSE. Abandon hope all ye who enter here :D
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