Phoenix Life Pension

pipswife

My husband has a small pension with Phoenix Life. He received his annual statement at the end of last year which showed he was expected to have a little under £8000 IRD (which is at the end of this year). We've been n correspondence with Phoenix Life and have been told by them that, although he might want to consider transfering this pension, he can't opt to cash it in. Is this really the case? We'd welcome your thoughts.

El_Torro

How old is he? If he's under 55 years old then Phoenix Life are right, he can't cash it in. 

At 55 or older it is possible to take it all at once. Phoenix Life might not offer this option though, so might need to transfer it to someone else first anyway. 

Remember that if he does cash it in most of it will count as taxable income. 


EDIT: Forgot to say, the above is true if his pension is Defined Contribution. Sounds like it might be Defined Benefit though, in which case he can still transfer it and take the cash, though will need to take advice from a Financial Adviser.

Cashing in Defined Benefit pensions is usually considered to be a bad idea.

xylophone

though will need to take advice from a Financial Adviser.

Not if the value is only £8000.

https://www.phoenixlife.co.uk/customer-centre/faqs/can-i-cash-in-my-pension

dunstonh

Phoneix do have a range of pension types on their books which do not have a cash in value (under UFPLS).  Not common but they do exist.  Under age is the most likely thing though.