What does the Chancellors pension revolution mean for us?

bmm78

paul5046 wrote: »

Are there any countries where you can take the lot so we can see how they have operated.
Ie take the lotand blow it, or be sensible.

Like kidmugsy says, double-dipping is one of the main issues. There have been calls for compulsory annuitisation, but how large and vocal they are I'm not sure.

No system is perfect.

Proxy

Francesca7777 wrote: »

But presumably, referring to the answer above, if you had ONE plan that was worth less than £10K, you COULD cash that in now? Even if your total of all private plans exceeds £30K?

Not unless you're aged 60 or over. But yes otherwise.

You can only do it three times too, so forget about any moving of funds to make lots of sub £10k pots!

Linton

Francesca7777 wrote: »

But presumably, referring to the answer above, if you had ONE plan that was worth less than £10K, you COULD cash that in now? Even if your total of all private plans exceeds £30K?

As of right now there are two separate circumstances you can take a small pension as cash - the total of all pensions is £18K or less (triviality), or up to 2 pensions have a value of £2K or less (stranded pots).

So you couldnt cash-in anything NOW.

After the 27th March you could cash in the £10K pension as the stranded pots limit is being increased to 3 pensions of £10K or less.

Proxy

Linton wrote: »

So you couldnt cash-in anything NOW.

Of course. Easy to forget that it isn't the 27th already

Francesca7777

Linton wrote: »

As of right now there are two separate circumstances you can take a small pension as cash - the total of all pensions is £18K or less (triviality), or up to 2 pensions have a value of £2K or less (stranded pots).

So you couldnt cash-in anything NOW.

After the 27th March you could cash in the £10K pension as the stranded pots limit is being increased to 3 pensions of £10K or less.

Yep that's what I thought, even though I'm only 55, not 60, right? I have three pensions - £23K, £11K and £4K. Presumably (as of 27th of March), I can cash in the £4K fund, and then the other two April 2015, yes?

wakeupalarm

Linton wrote: »

As of right now there are two separate circumstances you can take a small pension as cash - the total of all pensions is £18K or less (triviality), or up to 2 pensions have a value of £2K or less (stranded pots).

So you couldnt cash-in anything NOW.

After the 27th March you could cash in the £10K pension as the stranded pots limit is being increased to 3 pensions of £10K or less.

Does the over 60's rule apply to both triviality and stranded pots?

Proxy

Francesca7777 wrote: »

Yep that's what I thought, even though I'm only 55, not 60, right? I have three pensions - £23K, £11K and £4K. Presumably (as of 27th of March), I can cash in the £4K fund, and then the other two April 2015, yes?

You still have to be 60.

When you can take your pension pot as a lump sum
You must be at least 60 years of age to take your pension pot as a lump sum.
You may qualify to take all of your pension pot as a lump sum if:
one of your pension pots is worth £10,000 or less
your total pension pots under all the schemes you belong to are worth £30,000 or less
If your pension pot is £10,000 or less there are different rules depending on whether you're a member of a company or public pension scheme, or a personal pension scheme.

http://www.hmrc.gov.uk/pensionschemes/small-pen.htm

Francesca7777

wakeupalarm wrote: »

Does the over 60's rule apply to both triviality and stranded pots?

That's what I too am waiting for clarification on... Getting lots of contradictory info regarding this point...

Proxy

Francesca7777 wrote: »

That's what I too am waiting for clarification on... Getting lots of contradictory info regarding this point...

I think i've said it four times now. 60 as of today and until next year.

Francesca7777

Well I'm getting such different clarifications from different folks! Upon phoning the Pension Advisory Service (which I thought was funded by the government)... they say that as of the 27th of March, people who are 55 can also avail themselves of this opportunity to cash in pension funds up to £10,000.