Pension pot

oldtractor · 29 November 2011 at 5:22PM

I dont have a private pension but my husband does have. He took it out when self employed ,there is about £12,000 in the pot. He is now an employee and there is no works pension he can transfer it into nor is he going to add to it. I understand that if there is a low pension pot figure the whole amount can be withdrawn when the person reaches 65. Is this correct please?

jem16 · 29 November 2011 at 5:25PM

Under Trivial Commutation the whole amount can be taken at age 60 provided the total of ALL your pensions ( state pension excluded) is less than £18,000.

atush · 29 November 2011 at 5:31PM

I personally would have him reconsider how you both are going to live in retirement and perhaps keep paying in. And starting one for you.

dunstonh · 29 November 2011 at 6:13PM

His period of self employment meant he was qualifying for lower state pensions than an employed person. So, rather than trying to cash a pension in, it may be better to look to increasing it. Especially as you have no pensions either.

oldtractor · 29 November 2011 at 7:29PM

Thank you for your replies. I ,and he knows he should be paying in but its not possible financially. We will retire at 67 on state pension only, however little that is,he doesnt earn much money and its not possible to pay in ,we have a few savings totaling less than £1,000,I aim to save at least £500 a year into an ISA. We are in our mid 50's . I have spoken to a pension adviser and it seems that we would get less back than we pay in. we couldnt put more than £50 a month in anyway. Please dont question our policy,we try hard and just manage to keep our heads above water I really would like to know if its possible for my husband to cash in his pension pot in the future.