combining low pensions and taking them as cash

senrabbit

hi
I have been trawling the internet looking for some information regarding a change in the pension law which allowed (I think) you to take your pensions, if they didnt amount to more than 10k as cash. Does anyone know what this is called and where I can get more information on how to do this please?
thanks in anticipation.

Retired_I.F.A.

Heres the site you wanted...

basically it'll tell you if your 60 or over and have a pension funds currently under £16000 then you can cash it in (25% tax free, 75% taxed)

http://www.pensionsadvisoryservice.org.uk

senrabbit

Thanks for the reply, sadly I am only 51 so suppose I am unable to cash them in.

EdInvestor

At age 50 (55 from 2010) you can take 25% from your total pensions in tax free cash and leave the rest invested to grow, without taking an income till later.

To do this you'll need to move the pensions to a SIPP, and put them into "income drawdown" at nil income. (You can start taking an income then whenever you like and you can also convert the drawdown fund to a guaranteed annuity later if you want to).

If you do this though it would mean you can't later take them all in cash under the trivial commutation rules.

Retired_I.F.A.

Yet again Ed's promoting SIPP's when you can do the same via a personal pension as she well knows but decides as only a few companies offer such they should be ignored.

dunstonh

Ed, the OP has a teachers final salary pension scheme (from other post). He/she also lives abroad.

Retired_I.F.A.

Such is the problem with this board... too many suggestions/solutions/advice are given out by joe public who is neither qualified or authorised and without a full picture of the circumstances.