Small Pension Pot

theGrinch

Can these be taken 100% at 55 and if so what defines a small pot?

ffacoffipawb

theGrinch wrote: »

Can these be taken 100% at 55 and if so what defines a small pot?

Yes.

£10,000 or less.

You can take up to 3 small pots.

They dont use any LTA nor invoke the MPAA.

Albermarle

But be aware that 75% of any pension pot taken , small or otherwise , is taxable at your normal tax rate .

Marcon

ffacoffipawb wrote: »

You can take up to 3 small pots.

You can take up to 3 'small pots' from non-occupational pensions, but rather less well known is the fact you can take any number of small pots from occupational schemes. See https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/small-pots-defined-benefit-trivial-commutations/

Sea_Shell

On this topic, are you able to tee up small pots in advance to have them pay out on or just after your 55th birthday??

Anyone have any experience of dealing with Phoenix Life and Prudential in this respect?

What sort of timescales should we expect.

Ta

dunstonh

On this topic, are you able to tee up small pots in advance to have them pay out on or just after your 55th birthday??

Yes.  The scheme retirement age doesnt matter (assuming a DC scheme).   Some providers will also facilitate the splitting of a pension above the limit into small pots (i.e. A 25k pension could be split into £10k,10k and £5k)

Anyone have any experience of dealing with Phoenix Life and Prudential in this respect?

yes

What sort of timescales should we expect.

A couple of weeks to generate the forms and a couple of weeks to carry it out.

Sea_Shell

Thanks for that.

Would they write, with options, say within 3-6 months of 55?

Brynsam

Sea_Shell said:

Thanks for that.

Would they write, with options, say within 3-6 months of 55?

You'd have to ask them - they wouldn't do so spontaneously (partly because they wouldn't know you what you were planning and partly because DC values fluctuate the whole time).

Sea_Shell

Brynsam said:

Sea_Shell said:

Thanks for that.

Would they write, with options, say within 3-6 months of 55?

You'd have to ask them - they wouldn't do so spontaneously (partly because they wouldn't know you what you were planning and partly because DC values fluctuate the whole time).

So are they not required to write to customers as they approach their 55th birthday, explaining that they do have options under the pension freedom rules?

[Deleted User]

All my pension providers (company and SIPPS) sent me the standard info pack exactly 6 months before my 55th (last month in fact), but only because I had a target retirement date of 55.
There was nothing specific in the packs (apart from the forecasts), some came via post, others secure messages

Albermarle

Sea_Shell said:

Brynsam said:

Sea_Shell said:

Thanks for that.

Would they write, with options, say within 3-6 months of 55?

You'd have to ask them - they wouldn't do so spontaneously (partly because they wouldn't know you what you were planning and partly because DC values fluctuate the whole time).

So are they not required to write to customers as they approach their 55th birthday, explaining that they do have options under the pension freedom rules?

For most DC pension they have a target retirement date. This can be set by the client or if is this isn't done it usually defaults to 65.
It is a purely arbitrary date and can be usually changed on line or over the phone .