Small Pots

ffacoffipawb

Do any pension providers offer the flexibility to convert an existing pension into 4 separate pensions to enable 3 of them to b taken as small pots and the remainder to be used as normal?

i.e. Pension >>>>>

Small Pot 1 (value £9,999)
Small Pot 2 (value £9,999)
Small Pot 3 (value £9,999)
Main Pension (Pension - £29,997)

I am in excess of LTA so the opportunity of taking 3 small pots out of the LTA equation is worthwhile. I will be 55 next year.

Which providers will do thia?

Have a small pension with Pension Bee (under £700) but they only have one pension and wont split it.

Do Aviva Pensions (via Aviva wrap) allow this? I have a £5,000 pot with them which could be split into 4 if they would allow this.

Thanks

drumtochty

That would be called fraud if you did that with the intent of reducing the true total value of your pension pots to be reported to HMRC to reduce the tax you are due to pay.


In reality the numbers are already in the system, therefore they will be reported in your overal total pension value to HMRC.


End of story.

ffacoffipawb

drumtochty wrote: »

That would be called fraud if you did that with the intent of reducing the true total value of your pension pots to be reported to HMRC to reduce the tax you are due to pay.


In reality the numbers are already in the system, therefore they will be reported in your overal total pension value to HMRC.


End of story.

Not fraud as you could do partial transfers elsewhere with the same result. Just trying to keep things simple.
And the final comment is nonsense. Pension funds go up and down like a yo-yo every day and can fall sharply in a crash. The only important values are those values when you crystallise the funds / start receiving the benefits.