Trivial Cummutation Questions

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
2 replies 591 views
BirkonianBirkonian Forumite
46 Posts

I am 60, and have a Retirement Investment Account with Abbey National (now Santander).
The amount in the account is around £9,000, and I want to claim this amount using the trivial commutation option in order to clear some debts.
However, I am unsure about a few things, and want to get it right first time.
  • Do I have to officially retire and cease work to claim this amount using the trivial commutation option?
  • Do I need to do it through a financial advisor?
  • The form requires the signature of a witness. Does this witness have to be a financial advisor?



  • kidmugsykidmugsy Forumite
    12.7K Posts
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    The big question is whether that is the only pension entitlement you have (other than the State Pension.) Anyway, re your questions: no, not as far as I know, I do hope not.
    Free the dunston one next time too.
  • 1) No, you don't have to stop working, but you can never contribute to a pension again.

    2) That's a good question... I would suggest no, because of the things that HAVE to be done thru an IFA, the reason is because 'advice' needs to be given on the transaction, that's not really applicable to triviality.

    3) No, that's referring to simply a professional person that isn't related to you (there's usually a list of people who can witness it with those things?)

    - As mentioned, the total of all your pensions must be less than £18k, not just that one, State pension excluded.

    - Another thing to consider is the tax implications. 25% of that £9k will be received tax free, the remainder will be taxed at your highest marginal rate. So if you're near the next tax tier, perhaps wait until a year you're earning less, if you can afford to?
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