Can i cash in my Private Pensions

theped

I have two private pensions with Abbey Life that i didnt continue investing payments into for very long after taking them out years ago. Eighteen months ago when i was 60 i started getting two small monthly payments from them as a pension. I never got the opportunity to take a lump sum. One of the pensions pays me around £11p/m and the other around £24p/m. Can i request a settlement sum from Abbey Life to close these pensions off in return for a relative cash payout or, is this not possible seeing as ive already been receiving payments from them for 18 months?

LHW99

As these are now in payment there are no current rules allowing you to exchange them for a lump sum as far as I know.

theped

OK Thanks. What prompted the idea was that my sister-in-law has been receiving a coal board pension for years for her late father. A few months ago the coal board asked if she would be prepared to take a settlement figure and close the pension.

dunstonh

I never got the opportunity to take a lump sum.

It would have been in the list of options under trivial payment.

Can i request a settlement sum from Abbey Life to close these pensions off in return for a relative cash payout or, is this not possible seeing as ive already been receiving payments from them for 18 months?

Whilst it is theoretically possible, very few insurers offer it.

What prompted the idea was that my sister-in-law has been receiving a coal board pension for years for her late father. A few months ago the coal board asked if she would be prepared to take a settlement figure and close the pension.

Occupational pensions sometimes do this to get rid of the liability and reduce costs. They offer a figure that is likely to be less than the amount that will be paid out on a monthly basis.