Trival Pension Rules

AVENUE

I believe the rules on cashing in a Trival Pension are that this can only be done when you reach 60.


Yet if I'm reading things correct with the new pension rules being brought in from April people are now entitled to take their "normal" pension as a cash lump sum from the age of 55?


Is that correct because if it is surely the Trivial Pension rules should be altered to 55 too?


Many Thanks - Avenue

Your_Hero

You are right. There are plans to reduce this to age 55. In fact, 'triviality rules' will no longer apply to Money-purchase arrangements. It will be replaced by the new withdrawal method called "Uncrystallised Fund Pension Lump Sum (UFPLS)".


http://www.sippcentre.co.uk/Resources/Content/PDF/SPC_Summary_of_new_the_pension_freedoms.pdf

AVENUE

Thanks for that. I have 2 small pensions which when combined would both fall under the Triviality amount. Ive not paid into them for a long while. In fact they cant be paid into now. One is called a Buy Out Pension and I think the other is a Paid Up Pension.


One policy says that I can take the pension from 60 onwards, but does the new arrangements mean I will be able to take this at 55 as from next April?


Many Thanks - Avenue

xylophone

Buy Out Pension

Do you mean a S32 buyout bond with GMP?

AVENUE

xylophone wrote: »

Do you mean a S32 buyout bond with GMP?

Nope its just a very small ex company pension with Legal & General...its only worth around £2500.


The other one is a personal pension with Aviva worth just over £10,000. The Aviva one is an old Commercial Union Pensionmaker plan which states pension can be taken from age 60.


So does the new pension rules saying they can be taken from age 55 supersede that or am I stuck with it till 60 if that's what it states in the original policy?


Many Thanks - avenue

windbreaker

I left the uk in 1990 and since then wanted to cash in my pension which is now worth a mear two thousand pounds Scam Artists, Abbey life have ignored all my correspondence with them and all their replies are computer generated. I am now sixty and they have told me that I cannot have it as it is in a anulty what ever that is. I have sent in complaint after complaint and they just ignor it. I don't know who to talk to, I have so far spent 3000 dollars to get this transfer via a financial adviser. they will not talk to him so he says.

SomeUser

AVENUE wrote: »

So does the new pension rules saying they can be taken from age 55 supersede that or am I stuck with it till 60 if that's what it states in the original policy?

It will depend on the provider, but I expect most will allow it.

xylophone

http://www.which.co.uk/news/2014/07/pension-reforms-how-the-new-tax-rules-affect-you-374637/

You notice the "will enable" not "will require'' - you will need to consult the providers.

AVENUE

Thanks...I'll contact Aviva again with this info & see what they say.


Many Thanks - Avenue

dunstonh

Nope its just a very small ex company pension with Legal & General...its only worth around £2500.

What you describe is a section 32 buy out bond and may have guarantees on it which do not reflect the fund value.

I left the uk in 1990 and since then wanted to cash in my pension which is now worth a mear two thousand pounds Scam Artists, Abbey life have ignored all my correspondence with them and all their replies are computer generated. I am now sixty and they have told me that I cannot have it as it is in a anulty what ever that is. I have sent in complaint after complaint and they just ignor it. I don't know who to talk to, I have so far spent 3000 dollars to get this transfer via a financial adviser. they will not talk to him so he says.

Abbey do correspond with FCA regulated advisers that have a letter of authority signed by you giving the permission. However, if Abbey suspect that you are trying to do a transaction that is unlawful (which it does sound like) then they can choose to refuse to transact it.

You should really discuss this on your own thread and not hijack someone elses which has nothing to do with your subject.

AVENUE

I've just received the following reply from Aviva which has left me confused seeing as I thought that things had already been decided what was going to happen come April 6th 2015?


" We are unable to provide a quotation on the grounds of Triviality as the current minimum criteria to take triviality option are:


Minimum age requirement is 60 years and
Total investment in pension should be less than or equal to £30,000.00


We are not in a position to provide quotes outside of current pension legislation. Please contact us after the 2015 budget announcement and we will be able to provide you with further information."


Well my pension is worth less than £30,000.00 and I thought it had already been decided that all pensions including Trivial amounts could be taken at age 55 from next April or am I wrong in this assumption?


Many Thanks Avenue