Confused with all the different opinions here

charliehell

Right then, if a person has a FS pension pot AND one or two SMALL (under 10k each) DC pension pots AND is 55 years old - or will be in 2015 - can the DC pots be taken as cash?

Linton

If you were 60 or over you could take your two small pots as cash from the end of this month. As you arent you will have to wait for the new proposals to come in April 2015 and hope that the option isnt removed before implementation.

charliehell

Ah thanks, so it's 55 from next april..

lvader

Linton wrote: »

If you were 60 or over you could take your two small pots as cash from the end of this month.

Is that right? If the total value including the FS pension is over 30k I don't think he could. He doesn't say how much the FS is worth.

Proxy

lvader wrote: »

Is that right? If the total value including the FS pension is over 30k I don't think he could. He doesn't say how much the FS is worth.

Yes it's right. £10k is the new limit for "stranded pots" (currently £2k)

Other pots do not matter for this rule.

mania112

Proxy wrote: »

Yes it's right. £10k is the new limit for "stranded pots" (currently £2k)

Other pots do not matter for this rule.

3rd time lucky?

From April you can take what you want - this is not triviality or stranded pots.... unlimited access to whatever you've got (in a DC plan).

OldBeanz

Agree with Mania. The rules have been slackened until 2015 because the Chancellor is limited by what he can change. He has to put a bill through the commons and come April 2015 the plan is that anyone with a DC pot over 55 will be able to take all their pot with the first 25% tax free and the rest taxable as if a salary.

Proxy

mania112 wrote: »

3rd time lucky?

From April you can take what you want - this is not triviality or stranded pots.... unlimited access to whatever you've got (in a DC plan).

From next year, of course.

But my interpretation of the rules from next week is still correct, and given I was clarifying ivader's point stemming from Linton's point about current rules means I was not wrong.

So there.

charliehell

My index linked FS pension is frozen and the pot is around 300k. I take it this doesn't affect my ability to take the other two DC pots as cash..even though both were/are part funded by my company?

Proxy

charliehell wrote: »

My index linked FS pension is frozen and the pot is around 300k. I take it this doesn't affect my ability to take the other two DC pots as cash..even though both were/are part funded by my company?

It doesn't affect it next year when the new rules come in, no. But it will be taxed at your marginal rate of tax so depending on your income you might be ill advised to take it all at once.

charliehell

Okay, thanks.