Cashing in pension

Alm_2

I am currently in receipt of a service pension from my RAF days. Whilst being employed since leaving the service I have paid in to a pension scheme that will provide a pension pot of less than £15000.00 on retirement. I have been told that I will be able to take this sum as a lump sum. 25% is tax free with tax paid on the remaining 75% of it. Can anyone confirm this is correct. Any information appreciated. Thanks in advance

EdInvestor

This is called trivial commutation. Unfortunately you won't be eligible for it because the while your 2nd pension is small, all pensions (except state) must be taken into account including your RAF pension, so this will bust the limit.

You can still ake 25% in tax free cash but the rest must provide an income.

melvinyvonne

Can you advise me please, I a have a pension which was closed some time ago when the company i worked for closed down, I was wrongly advised about this pension, I was told I could not pay into it any more. The pension is sat there doing nothing and i would like to cash it in, is there any way I can do this? Your help would be greatly appreciated.:beer:

EdInvestor

No you can't cash it in, you can only get 25% out in cash after age 50 (55 from 2010).

Is it a final salary pension?If so it is increasing by inflation or 5% every year, it's not just "sat there doing nothing".

If it's a money purchase pension, the funds will be invested and should have inclreased in value since you left.You can move this kind of pension to one of your owqn choosing.