help

mary6

is it true i can not cash in my pension and only transfer it? I have not opted out of serps.

MrChips

It depends how old you are. You can cash in 25% of it if you are over 50 (or when you are over 55 from 6 April 2010).

Otherwise no. This is to prevent people succombing to temptation and raiding their provision for old age before they retire.

MrChips

For the avoidance of doubt (after reading a recent thread on here), in order to take the 25% pension commencement lump sum above, you do need to commence your pension at the same time.

Lavendyr

I am not sure that is true.

From the Pension Advisory Service http://www.pensionsadvisoryservice.org.uk :

At retirement you can take up to 25% of your fund (including protected rights) as a lump sum which is tax free. The remaining 75% must be used to provide a pension. This does not mean that an annuity has to be bought. The purchase of an annuity can be deferred and an income taken from the fund. This process is known as Income Withdrawal which is described in the section on Flexible Retirement. An annuity must be bought by age 75.

MrChips

I didn't say having to buy an annuity, I said commencing the pension - which (in my opinion)includes drawdown

dunstonh

****Terminology alert****

Yes, when you take the 25% Tax free cash you are commencing your pension. The modern term is benefit crystallisation. You are putting into place a reduction of death benefits and a change to the how the pension is classified. The fact the income will be zero doesnt matter. It technically has commenced.