Trivial Commutation question

Can_you_help1

Hi, I have three old small pensions (two worth less than a £1000, and one worth around £20,000). I am 56 and did not realise that I could cash these in. When I have looked I am being asked if I want to take Trivial Commutation which of course raises the amount. However, I also have a teacher pension that I am currently paying into and which will pay more. I won't be claiming on this for at least 5 more years. Does that mean that Trivial Commutation will not apply to me? Thanks in advance for any advice.

Marcon

Can_you_help1 said:

Hi, I have three old small pensions (two worth less than a £1000, and one worth around £20,000). I am 56 and did not realise that I could cash these in. When I have looked I am being asked if I want to take Trivial Commutation which of course raises the amount. However, I also have a teacher pension that I am currently paying into and which will pay more. I won't be claiming on this for at least 5 more years. Does that mean that Trivial Commutation will not apply to me? Thanks in advance for any advice.

Trivial commutation has very specific HMRC-imposed limits. You can only trivially commute where:

• a particular pension is worth under £10,000 (if it's a defined benefit scheme, that means the capital value, not the annual pension)

or

• your private pension provision (ie non-state) from all sources totals under £30,000 (again, where DB schemes are concerned, you're looking at capital value, not annual pension) - which definitely doesn't apply to you, given what you've said.

Can_you_help1

Thank you - that's helpful