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Trival Pension Rules

2

Comments

  • greenglide
    greenglide Posts: 3,301 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    The legislation has not been passed yet so they are quite correct that they cannot give out information on the basis of laws which may or may not be passed.

    It is possible that the legislation may impose other rules which have not yet been thought about.
  • dunstonh
    dunstonh Posts: 120,164 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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?

    Triviality is still age 60. Not 55. April 2015 will see the end of those triviality rules (at least in their current state) and they may be able to offer age full fund withdrawal then. However, they cant now. They cannot produce information based on legislation that is not yet in force.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AVENUE wrote: »
    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

    Aviva is correct. Wait until April 2015 to ask because the rules could in theory be changed (again).
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • AVENUE
    AVENUE Posts: 173 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks Folks, i'll contact them again in April.
  • AVENUE
    AVENUE Posts: 173 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Also a couple of further points just for clarity seeing as from the previous comments I'd assumed the 55 rule for both "normal" & "Trivial" pensions had already been approved from April 2015.


    Is that not the case and will no one at all get a forecast of their pension trivial or otherwise until April 2015.


    Is the assumption that all pensions trivial or otherwise will be able to be claimed at 55 from 6th April 2015 or can people only "apply" to claim them from that date.


    I thought George Osborne had already said that was going to happen and I'm still just a bit confused about Aviva saying I've got to wait till after the April 2015 budget.


    How long would you expect it might take an insurance company to process a claim and pay out the cash?


    Very Many Thanks - Avenue
  • molerat
    molerat Posts: 34,981 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    AVENUE wrote: »
    .........
    How long would you expect it might take an insurance company to process a claim and pay out the cash?
    .............
    I did a trivial com with Standard life, applied on 28th April and the money was in my bank on 8th May so they can be pretty quick ;)
  • jem16
    jem16 Posts: 19,724 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    AVENUE wrote: »
    Also a couple of further points just for clarity seeing as from the previous comments I'd assumed the 55 rule for both "normal" & "Trivial" pensions had already been approved from April 2015.

    Nothing has been "approved" as yet. It's still to be passed through parliament.
    Is that not the case and will no one at all get a forecast of their pension trivial or otherwise until April 2015.

    You can still get a forecast but it will be based on current regulations.
    Is the assumption that all pensions trivial or otherwise will be able to be claimed at 55 from 6th April 2015 or can people only "apply" to claim them from that date.


    I thought George Osborne had already said that was going to happen and I'm still just a bit confused about Aviva saying I've got to wait till after the April 2015 budget.

    George Osborne only announced his intention to change the pension regulations from April 2015 but it has still to be passed through parliament. Even if it wasn't, Aviva can hardly process your requirements based on a regulation which won't happen until April 2015.
  • dunstonh
    dunstonh Posts: 120,164 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is the assumption that all pensions trivial or otherwise will be able to be claimed at 55 from 6th April 2015 or can people only "apply" to claim them from that date.

    You can request trivial commutation forms from most providers prior to the date but you cannot submit them before.
    Is that not the case and will no one at all get a forecast of their pension trivial or otherwise until April 2015.
    There is no such thing as a trivial commutation forecast.
    I thought George Osborne had already said that was going to happen and I'm still just a bit confused about Aviva saying I've got to wait till after the April 2015 budget.

    You have legislation to be passed and the date it comes into effect to consider first.
    How long would you expect it might take an insurance company to process a claim and pay out the cash?

    3 days to 3 weeks depending on insurer and if you supply the correct paperwork.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AVENUE
    AVENUE Posts: 173 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks for the replies, most helpful.


    Avenue
  • some years ago my husband contracted out of serp's , then he was told it was the wrong thing to do so went back into serp's . he passed away 8 yrs ago and prudential contacted me to say there was a small pension from his serp's days about £12000 in all , i was told at the time i could only take an annuity out which i did , this is payed monthly only a small amount . it gives me more grief then its worth with DWP , council tax and such like .
    i understand from the news they are changing the rules next year .
    my question is can i from next year take this pension out in a lump sum to get rid of it as like i said before it gives me more grief then its worth

    thankyou for your time
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