Pension Plan

ragdollabbi

What is a With Profits Pension Plan exactly, and can it be cashed in before maturity (5 years from now)

dunstonh

The pension is one thing. The with profits fund is a fund that the pension can invest in.

Pensions cannot be cashed in. Most can be commenced between age 50-75 (changing to 55-75 from next April). That means you can take 25% of the transfer value and the rest buys you an income using an annuity.

There are some pensions (that can often invest in with profits) that have guarantees on them which can either prevent early commencment or see the guarantees lost if they do allow it. Particulary in plans known as section 32 buy out bonds or Section 226 Retirement annuity contracts.

If all your pensions are valued at less than 1% of the lifetime allowance (currenlty £17500) then you can request to have them paid as a lump sum minus a tax penalty if you are aged 60 or over.