Release of funds in personal pension

donaldfleming

I am 52 years old. In 1984 I took out a personal pension plan with Abbey Life.

After 2 years, due to becoming chronically ill, I agreed with the company to cease contributions. However, on reaching 60 years old the funds accumulating in my pension pot will be used to purchase an annuity.

My latest report (November 2009) states that "The value of your fund is £1,994 and the value which may be transferred to a pension plan with another insurer is £1,683."

I remain chronically ill and living on welfare benefits, therefore it would be advantageous if I could gain immediate access to whole or part of the fund.

Is this legally possible?

bendix

Probably not, unless you're terminally ill.

KiNeL

AFAIK this is a so called 'trivial pension' if you have been paying in for less than 2 years and/or the fund is worth less than £15k can be taken as cash - less tax of course..

EdInvestor

You can take it in cash when you are 60 under the triviality rules assuming the total of all your pensons (excluding state) isn't over £17k.Right now (until April 6 next year)you can take 25% of it in tax free cash and the rest as an annuity income.After that you would have to wait until you were 55 to do that.