Taking 2 small pensions at 55

jack290292

I have two very small pensions 4.5K and 14K and have now reached 55.
I would like to cash in these pensions (I have other pensions that I am not touching). Can I take 25% tax free from the 4.5K one and pay tax on the rest, I am working but will still keep me in normal tax range.
Can I then cash the second one in full in the next tax year and take 25% tax free and then pay tax on the rest?
Thanks for any info.

zagfles

Yes, as long as the provider allows it. I think most are allowing a full cash-in though many aren't offering the full range of flexibilities (eg drawdown).

If they don't allow it you can transfer to someone who does.

Make sure you're aware of the tax consequences for instance the money purchase annual allowance (google it) which will affect how much you can put into pensions in the future.

jack290292

Thank you. Yes they both allow me to cash-in the full amounts and will be ok with the allowance.

Very speedy reply - thanks