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    • Vegastare
    • By Vegastare 9th Aug 18, 8:50 PM
    • 82Posts
    • 12Thanks
    Vegastare
    More confused small pension pot
    • #1
    • 9th Aug 18, 8:50 PM
    More confused small pension pot 9th Aug 18 at 8:50 PM
    I asked last month on MSE regarding taking small pot pension and am grateful for the answers, I am somewhat confused now by Pension Advisory Service whom I spoke to.
    Basically I understand that you can take upto 3 small pots only and if under a certain amount and get 25% tax free remained taxed etc.
    But what I didn't understand is I have to take the small pots all in one ago in the same year.

    Is this right.
Page 1
    • Brynsam
    • By Brynsam 9th Aug 18, 10:54 PM
    • 1,676 Posts
    • 1,230 Thanks
    Brynsam
    • #2
    • 9th Aug 18, 10:54 PM
    • #2
    • 9th Aug 18, 10:54 PM

    But what I didn't understand is I have to take the small pots all in one ago in the same year.

    Is this right.
    Originally posted by Vegastare
    The 12-month period applies only in respect of defined benefit pension which are being 'trivially commuted' (i.e. small pensions exchanged for one-off cash lump sums).

    No such restriction on taking small pots from defined contribution arrangements.
    • xylophone
    • By xylophone 9th Aug 18, 10:59 PM
    • 26,870 Posts
    • 16,018 Thanks
    xylophone
    • #3
    • 9th Aug 18, 10:59 PM
    • #3
    • 9th Aug 18, 10:59 PM
    But what I didn't understand is I have to take the small pots all in one ago in the same year.
    This applies to "trivial commutation" rather than to the "small pots"
    rules?


    https://www.litrg.org.uk/tax-guides/pensioners-and-tax/how-do-i-cash-my-small-pension-trivial-commutation
    • Vegastare
    • By Vegastare 10th Aug 18, 12:06 AM
    • 82 Posts
    • 12 Thanks
    Vegastare
    • #4
    • 10th Aug 18, 12:06 AM
    • #4
    • 10th Aug 18, 12:06 AM
    Oh goodness, I think it is defined contribution - I am afraid the trival communciation I have not heard of. All that was mentioned when I spoke to Aegon was that I may be able to take two of the small pensions as small pots.
    • Brynsam
    • By Brynsam 10th Aug 18, 7:56 AM
    • 1,676 Posts
    • 1,230 Thanks
    Brynsam
    • #5
    • 10th Aug 18, 7:56 AM
    • #5
    • 10th Aug 18, 7:56 AM
    Oh goodness, I think it is defined contribution - I am afraid the trival communciation I have not heard of. All that was mentioned when I spoke to Aegon was that I may be able to take two of the small pensions as small pots.
    Originally posted by Vegastare
    Check with Aegon if they are defined contribution or defined benefit.
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