Small pot

singhini

Out of curiosity, ive got a couple of questions

1 - can the OP go back to the pension company and "negotiate" i.e. ask for say £12,000 
2 - could the OP ask for the lump sum to be "transferred" into another pension pot (that way its still inside the pension wrapper and potentially able to continue to grow)

Marcon

singhini said:

Out of curiosity, ive got a couple of questions

1 - can the OP go back to the pension company and "negotiate" i.e. ask for say £12,000 
2 - could the OP ask for the lump sum to be "transferred" into another pension pot (that way its still inside the pension wrapper and potentially able to continue to grow)

Anyone can ask for anything - whether they get a positive answer is another matter!

1. The company won't bother; it'll be a take it or leave it offer.
2. You can't transfer a pension once it is in payment.

singhini

Thankyou for the heads-up 

bullinn1

Thanks chaps, yes I’m 75, fit and well. The “offer” is “one-off” I need to complete and return by October 25. 

Silvertabby

It depends on the whole picture.  Yes, rule of thumb is not to accept these offers, as they usually mean that it's the pension provider who gains.   But if the £1K annual pension is only a tiny part of OP's overall income, then taking the lump sum may not be so awful.

Mr S had a similar offer a couple of years ago.  A small private sector DB was paying little more than £20 a month after tax, and they offered him just over £8K (less 20% tax).  Unlike OP's pension, this was (capped) index linked and paid 50% widows benefits - but the pension was a tiny percentage of our overall pensions, and not worth the faff of the admin involved.  

He filled out the payment claim form, and I sent off for a Rhino greenhouse brochure.  We now both get much more pleasure out of our Rolls Royce standard greenhouse than the extra £20-odd a month pension.

However, every case will be different.