Cant cash in pension until 60

Heather25

I've just been told by Virgin pensions that even at 55 I can move the huge total sum of £11k into an annuity but only take 25% in cash. For the rest I have to wait until I'm 60. I'm sure when I started the pension there was a question as to when I would want to take it out and I remember putting 55 in the box. Is there any way round this?:(

jem16

Heather25 wrote: »

I've just been told by Virgin pensions that even at 55 I can move the huge total sum of £11k into an annuity but only take 25% in cash. For the rest I have to wait until I'm 60. I'm sure when I started the pension there was a question as to when I would want to take it out and I remember putting 55 in the box. Is there any way round this?:(

Sounds like you were told a load of rubbish. You can't crystallise the pension ( ie take a lump sum) without taking an annuity unless you enter a drawdown agreement. I doubt that Virgin do drawdown to be honest.

molerat

Are you wanting to take the whole amount as cash ? If so then they are correct in that you can only do a trivial commutation at 60 (subject to strict conditions). By taking 25% as cash and the rest as an annuity you are "taking the whole amount" by crystalising the pension at 55 which is what you signed up to.

Heather25

Yes I did want to take the whole amount in cash.

jem16

Heather25 wrote: »

Yes I did want to take the whole amount in cash.

Then you do have to wait until age 60 to exercise triviality as molerat says.

Is this your only pension?

Heather25

I have a small pension from previous employment but my senior years I'm hoping will be covered by the income from rental property. I hoped to cash in the pension to fund a further property.

Old_Slaphead

jem16 wrote: »

You can't crystallise the pension ( ie take a lump sum) without taking an annuity unless you enter a drawdown agreement.

Interesting - I was told (by an IFA) that I could take 25% cash from PPP if I was transferring proceeds into my SIPP.

molerat

Heather25 wrote: »

I have a small pension from previous employment but my senior years I'm hoping will be covered by the income from rental property. I hoped to cash in the pension to fund a further property.

Do the two funds added together come to more than £18K, if so triviality is not an option.

jamesd

You can take 25% from any personal pension from age 55. No need to transfer to do it unless the place you're transferring from doesn't let you. Triviality is different and lets you take 100%, with 25% tax free, provided the total capital value of all of your pensions is less than the £18,000 triviality limit. Triviality can be used exactly once per lifetime, with a year to cash in all pensions you want to cash in, and only between ages 60 and 75.

dunstonh

I've just been told by Virgin pensions that even at 55 I can move the huge total sum of £11k into an annuity but only take 25% in cash. For the rest I have to wait until I'm 60. I'm sure when I started the pension there was a question as to when I would want to take it out and I remember putting 55 in the box. Is there any way round this?

You have never been able to take the pension as cash in full with the exception of triviality.

Interesting - I was told (by an IFA) that I could take 25% cash from PPP if I was transferring proceeds into my SIPP.

You can. The personal pension or SIPP would be utilising drawdown.

jem16

Old_Slaphead wrote: »

Interesting - I was told (by an IFA) that I could take 25% cash from PPP if I was transferring proceeds into my SIPP.

Presumably in transferring to a SIPP, you were then going to take the 25% tax free and put the rest into drawdown.