Trivial Pension

MoneySavingTartMoneySavingTart Forumite
81 Posts
My wife is 52 and has a section 32 buyout pension policy dating from 1987 when she last worked. This is her sole pension provision. The fund is worth about £10k. Under current rules, she could buy an annuity now (age >50).

After A day I read that this age limit will rise to 55 and that total pension pots less than £15k can be commutated into cash after the age of 60 (with appropriate taxation).

It would appear there is a 'age trap' for the opportunity to buy an annuity.

Additionally, there is a potential 'carrot' to hang on to age 60 for TP commutation to be allowable

Does anyone know if there will be any transition arrangements for people of my wife's age as our prefered option is to take TP commutation without waiting 8 years!

Thanks In Advance

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