Occupasional Pension Withdrawal.

Lifeliver

I receive a payment each 3 months from my Occupasional Pension along with my State Pension.

Is it possible to withdraw my occupasional pension as one lump sum ? Finishing the 3 monthly payments.

flaneurs_lobster

It depends. What kind of pension is it?

Is it a personal pension that is now in drawdown or is it a Defined Benefit pension that is now paying out?

What does it say on the last pension statement you received?

Albermarle

It is a bit unusual to be paid every 3 months.

As above, more details needed.

Alderbank

Is this with reference to your 'small Occupational Pension which is an annuity of £98.31 Per 3 months' which you talk about in the other post you have running?

If so, you would be better sticking with just the one post so that people don't have to ask the same questions over again.

flaneurs_lobster

Previous post from OP suggests that the payments are from an annuity.

If that's so then no, don't believe you can change the payment details (or withdraw a lump sum, since there is no lump sum)

DRS1

I do like the idea of an Occupensional Pension.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82089432#Comment_82089432

It's common where the annual amount is very small - not that unusual to find payments being made every 6 months or even just once a year where the amount is tiny.

OP, best idea is to contact the people administering the scheme and ask them. Nobody here can give you a definitive answer.

xylophone

If you find that it is possible to "trivially commute" this pension in payment, (ie, accept a lump sum in full satisfaction of the scheme's obligation), remember that the lump sum will be fully taxable.

For example, suppose you were offered a lump sum of £3000. In your circumstances, tax of 20% of that amount would be due and almost certainly deducted at source.

Your state pension is higher than the standard personal allowance of £12,570 so as things stand, you would still be liable for tax. See "Penny" example here

https://www.litrg.org.uk/pensions/state-pension/tax-state-pension/how-tax-collected-state-pension

Lifeliver

Okay all.Thank you kindly for the replies. As it appears i would not be better off. So best i stay as i am and deal with the crazy increasing tax payments that look to increase even more when Burnham and gang gets his policies sorted.

flaneurs_lobster

I've adjusted your statement for you

Okay all.Thank you kindly for the replies. As it appears i would not be better off. So best i stay as i am and deal with the crazy increasing tax payments that look to increase even moresensible and prudent tax adjustments when Burnham and gang gets his policies sorted.

..or is that political too?

QrizB

I'm pretty sure 20% is the lowest "basic rate" of income tax of the OP's lifetime. The 10p "starter rate" has essentially been swallowed up by increases in the Personal Allowance.

OP could of course save a few pennies by moving to Scotland, where they'd be paying 19% not 20% on their occupational pension and excess state pension.