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Creating a small pension pot

Scarum
Posts: 115 Forumite



Has anyone done this and is it legit / permissible?
To create a small pension pot (under £10,000) with the intent on accessing it under the small pension pot pension rules within the short term (i.e. within a year or two).
Kind regards
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Comments
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Lots of people. There's a massive thread about turning £2,880 into £3,600 each year.
Not specifically about the "small pots" rule as such but the principle is similar although I suspect many aren't bothered about invoking MPAA.0 -
turning £2,880 into £3,600
Abracadabra and shake the magic money tree?
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xylophone said:turning £2,880 into £3,600
Abracadabra and shake the magic money tree?
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HL will create a small pot for you.0
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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.1
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Thanks for updates. I read about the small pots in an old thread I could not find.
I’ll investigate HL. I was also thinking if Vanguard as the fees are quite low. In fact I’m thinking of two small pots to bridge those extra years.0 -
Scarum said:Thanks for updates. I read about the small pots in an old thread I could not find.
I’ll investigate HL. I was also thinking if Vanguard as the fees are quite low. In fact I’m thinking of two small pots to bridge those extra years.1 -
Start a personal pension with any provider and ensure you withdraw the whole of it in one go before it hits the £10,000 mark - and also ensure you stipulate you are taking the cash under the small pots rule. That way you won't trigger the Money Purchase Annual Allowance and you use 0% of your Lifetime Allowance. You can do this up to 3 times with personal pensions (no limit on the number of times you can do it with true occupational schemes, but those are self-limiting for obvious reasons. Confusingly, things like group personal pensions are NOT occupational schemes).Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!2
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