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Cashing in small pensions at 55
Comments
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Strange as they dont do it by phone. They ask you to fill in the appropriate P form.
Well, I assumed that I would have to complete some type of form.
I asked about completing paperwork and she said that they had moved on a lot since 2004 (I was asking about something that had happened that year) and I wouldn't have to complete any.
Either it has changed then or I was speaking to a complete numpty.0 -
Well, I assumed that I would have to complete some type of form.
I asked about completing paperwork and she said that they had moved on a lot since 2004 (I was asking about something that had happened that year) and I wouldn't have to complete any.
Either it has changed then or I was speaking to a complete numpty.
The P forms were brought in with the pension freedoms introduced in 2015 (bar one that already existed but was amended). The first set of rule changes that allowed some lump sums came in 2006.
It is actually possible without the P form but that usually takes longer.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.0 -
Taking the pension as a lump sum will mean that the amount is treated as income that year. So, your benefits/credits will be reduced/removed.
Yes, you could be losing this pension money as your benefits/credits could be reduced. So you would be no better off (after the 25% TFLS) I wouldnt do anything until you check this point thoroughly.
Consider transferring the small pensions to a Sipp, taking the 25%TFLS, and leaving the rest to grow until actual retirement.0
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