Cashing small pension pot--Daily Mail

scrumpyjax

Hi
Article in the mail today about new rules to allow small pension pots to be cashed in :j
Great news, but does anyone have a better understanding of the proposed changes and how they will work?
I have 3 such small pensions,one only pays £6 pm, and the other 2 are only a little better.
The cash would be far more use to me now.;)
:beer:

atush

How old are you? How much are all 3 pensions worth together? Are any of them DB/final salary/public service pensions?

Generally, you can take all pensions, under triviality, at 60 if they are worth 18K or less. If they are, great, but 18K does not an easy retirement make. You should have more saved.

Also there is the seperate but different Stranded Pots legislation if you have a pot worth 2K or less you can claim that as a LS as well.

molerat

http://www.dailymail.co.uk/news/article-2581449/At-Savers-cash-small-pension-pots-After-Mail-campaign-new-rules-benefit-150-000-people-year.html

Not much detail to be honest - does it mean that 10 pots of less than £15K each can be cashed ?

scrumpyjax

atush wrote: »

How old are you? How much are all 3 pensions worth together? Are any of them DB/final salary/public service pensions?

Generally, you can take all pensions, under triviality, at 60 if they are worth 18K or less. If they are, great, but 18K does not an easy retirement make. You should have more saved.

Also there is the seperate but different Stranded Pots legislation if you have a pot worth 2K or less you can claim that as a LS as well.

Not pension speak please;)..what is D/B and LS?
I'm nearly 66 and don't know what they are worth...they pay out approx £150 pm in total. They are not final salary or public service.

wallpaperman

scrumpyjax wrote: »

Hi
Article in the mail today about new rules to allow small pension pots to be cashed in :j
Great news, but does anyone have a better understanding of the proposed changes and how they will work?
I have 3 such small pensions,one only pays £6 pm, and the other 2 are only a little better.
The cash would be far more use to me now.;)
:beer:

Whatever these changes bring I am sure it won't apply to people who have already taken their pension benefits, so sorry it is unlikely to help you.

shopaholicno1

Will it mean you can cash it in before retirement? My husband would like to do this, and he is 40.

atush

scrumpyjax wrote: »

Not pension speak please;)..what is D/B and LS?
I'm nearly 66 and don't know what they are worth...they pay out approx £150 pm in total. They are not final salary or public service.

LS lump sum, DB defined benefit/final salary

Taking them under stranded pots and triviality is done Before you commence getting an income. In your case, I assume you have bought annuitites with them so nothing can be done.

atush

shopaholicno1 wrote: »

Will it mean you can cash it in before retirement? My husband would like to do this, and he is 40.

I don't read the amil so didn't read this.

But we can assume your husband will NOT be able to touch the pensions in any way until 55, and under the triviality rules at 60. By which time the pensions will hopefuly be worth more than 18K as we are talking 15-20 years more growth. and I hope he is saving more as are you.