Trivial Commutatation

JaZi2020

Just had paperwork come through regarding my pension that I can take now (I'm 55).  Looking at the Trivial Commutation package and want to double check that I'm reading it right. 
I have two pensions that I can take with this one particular provider, and other pensions that I can't take until I'm 65.  On a quick calc, all my pensions in total come to cover £30k.  Does this mean I can't take a TC on any of the pensions? Or can I take the smaller one now and leave all the others to run their course?

Marcon

JaZi2020 said:

Just had paperwork come through regarding my pension that I can take now (I'm 55).  Looking at the Trivial Commutation package and want to double check that I'm reading it right. 
I have two pensions that I can take with this one particular provider, and other pensions that I can't take until I'm 65.  On a quick calc, all my pensions in total come to cover £30k.  Does this mean I can't take a TC on any of the pensions? Or can I take the smaller one now and leave all the others to run their course?

Trivial commutation from a defined benefit scheme covers all your (non-state) pensions, so you can't trivially commute any of them if the total value of all your benefits in all schemes exceeds £30K.

If you have benefits in any defined contribution schemes, you could opt to take the whole lot as cash (although you may need to transfer one or more to a newer contract if the existing contracts have restrictions in doing that).

xylophone

https://www.litrg.org.uk/tax-guides/pensioners/how-do-i-cash-my-small-pension