The Pensions Advisory Service
TPAS Newsletter - April 2012
New Rules Introduced For Cashing In Pension Pots
There are a few scenarios in which pension plan members can cash in their pension pots.
Under triviality rules introduced in April 2006, someone 60 or over can cash in their plans if the aggregate value of their plans is less than a set threshold (currently £18,000) and the rules of the plan allows it.
In December 2009, new rules were introduced to allow members of occupational pension schemes to cash in their entitlements of less than £2,000, even if they have other pension savings that take them above the threshold. They still have to be 60 or over.
On 6 April 2012, further new rules were introduced to allow members of non-occupational pension schemes (i.e. personal pensions, stakeholder pensions, SIPPs, section 32 buyouts, retirement annuity contracts) to also cash in entitlements of less than £2,000. Again, they have to be 60 or over
Click here to read more about cashing in pensions
Spotlight On...
You find all of these factsheets on our website.
- The new drawdown rules (SPOT001)
- The new flexible drawdown rules (SPOT002)
- The new drawdown rules for people already using drawdown (SPOT003)
- Changes to the annual allowance (SPOT004)
- Income drawdown v annuity purchase (SPOT005)
- Annual Allowance transitional rules (SPOT006)
- How to test pension savings against the annual allowance (SPOT007)
- Trivial commutation - detailed (SPOT008)
- Getting financial advice (SPOT009)
- Using a redundancy payment to pay into a pension scheme (SPOT010)
- The change from RPI to CPI (SPOT011)
- Trivial commutation - quick (SPOT012)
- Transfers with immediate vesting vs OMO (SPOT013)
- Death benefits - taking small pots as a lump sum (SPOT014)
- Paying voluntary NI contributions - the extended rules (SPOT015)
- Tax and lump sums paid on death - defined benefit schemes (SPOT016)
- Tax and lump sums paid on death - defined contribution schemes (SPOT017)
- Tax and lump sums paid on death - income drawdown plans (SPOT018)
- Fixed protection (SPOT019)
Click here to visit our publications page and view all the factsheets
Contact Us
If you have any pension questions, please feel free to contact us by calling our helpline on 0845 601 2923. Alternatively, click here for alternative ways to get in touch.
