Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Vegastare
    • By Vegastare 9th Aug 18, 8:50 PM
    • 101Posts
    • 107Thanks
    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
    • 1,824 Posts
    • 1,342 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
    • 28,333 Posts
    • 17,145 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
    • 101 Posts
    • 107 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
    • 1,824 Posts
    • 1,342 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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,829Posts Today

6,700Users online

Martin's Twitter