Small pots triggering mpaa

plumb1_2

Hi I have several pension pots (6)
1-RL £230k plus, plus RL (£100)/ex royal liver stakeholder( carpet baggers days).
3-Standard life £35k, Standard life (£105) (ex carpet bagger)
5- Nest £7k
6- vanguard sipp £25k(cash).

i am only paying into RL @£50;p/m and hopefully pay into the vanguard sipp this year with another lump sum 
is it worth transferring the RL&SL £100 pots into the nest pension still making it under  £10k. Then either closing it and taking drawdown?
Would this trigger mpaa?

Just trying to bring the total of pensions down to 2 the main RL &SL to make things simpler for me.
Hope you understand what I mean ?

L9XSS

AFAIK you can take up to 3 small pots under 10k each without triggering the MPAA

Marcon

plumb1_2 said:

Hi I have several pension pots (6)
1-RL £230k plus, plus RL (£100)/ex royal liver stakeholder( carpet baggers days).
3-Standard life £35k, Standard life (£105) (ex carpet bagger)
5- Nest £7k
6- vanguard sipp £25k(cash).

i am only paying into RL @£50;p/m and hopefully pay into the vanguard sipp this year with another lump sum 
is it worth transferring the RL&SL £100 pots into the nest pension still making it under  £10k. Then either closing it and taking drawdown?
Would this trigger mpaa?

Just trying to bring the total of pensions down to 2 the main RL &SL to make things simpler for me.
Hope you understand what I mean ?

Cashing in the whole of your 'small pot' under the small pots regime doesn't trigger the MPAA. You can do this for up to 3 personal pensions, and any number of occupational (usually trust or statute-based) pensions. It uses 0% of the LTA, so handy for those who have that first world problem of breaching the LTA...

Albermarle

Not all pension providers will arrange a withdrawal under the 'small pots rule', so you need to check. I do not think Vanguard do for example. Probably because it is an extra bit of admin. 

plumb1_2

Albermarle said:

Not all pension providers will arrange a withdrawal under the 'small pots rule', so you need to check. I do not think Vanguard do for example. Probably because it is an extra bit of admin. 

Thanks so I’ll have to check with do, hopefully Nest do?

I received a letter to day from Wesleyan asking if I wanted my fund to go into Lifestyling fund from the managed.
I totally forgot I had a small(under £100) stakeholder with them , another one to deal with.
I don’t really need the money from my 7 pensions yet, have enough cash to get by on for 3 yrs.
Just need to get things more manageable, for myself ( memory like a October cabbage now)
and for the wife in case in kick the bucket.

Albermarle

Thanks so I’ll have to check with do, hopefully Nest do?

No idea sorry. 

NedS

Albermarle said:

Not all pension providers will arrange a withdrawal under the 'small pots rule', so you need to check. I do not think Vanguard do for example. Probably because it is an extra bit of admin. 

Indeed, and I'm assuming that when cashing in a pension under £10k, one would have to specifically ask for the cash to be paid out under the "small pots" rule and not just assume that will be the case because it's value happens to be less than £10k.

Albermarle

NedS said:

Albermarle said:

Not all pension providers will arrange a withdrawal under the 'small pots rule', so you need to check. I do not think Vanguard do for example. Probably because it is an extra bit of admin. 

Indeed, and I'm assuming that when cashing in a pension under £10k, one would have to specifically ask for the cash to be paid out under the "small pots" rule and not just assume that will be the case because it's value happens to be less than £10k.

That is correct. Of course you can withdraw a pension worth less than £10K from any provider, but I am pretty sure you would have to specifically ask that it was under the 'small pots rule' . To be on the safe side it would always be better to make that clear anyway.

plumb1_2

Feel Victor Meldrew now don’t bbb it, found another one from 20 yrs ago, NFU, thats 8
As I said I don’t really need to cash in any pensions for a couple of yrs min. Only a year off Sp.
I am working part time what ever days suit me.
So was thinking if Vanguard would allow it to transfer NFU,Wesleyan and nest into my sipp
Keeping my SL and RL stakeholders, as my other 2 RL&SL pensions have clauses in them requiring me to take financial advice, so possibly avoid that issue by putting them into the stakeholders?

Does my thinking sound plausible? Or is there a better way of trying to get things more manageable? Options please 

plumb1_2

Well that’s nest, NFU and Wesleyan transferred to Vanguard sipp this morning.
Will have to find out if SL and RL stakeholders allow drawdown before if it’s advantageous to keep them or transfer.