Another pension question

[ArchieG]

I've decided to leave RM. Going to wait until the end of this year, pretty much up to my 4th year anniversary (not long I know, quite long enough for me ). My question is can I basically cash in my pension? I'm not interested in making sure I get an income from my pension and all that jazz. I'm sorted, ta. I just want a lump sum.

[robking]

I've decided to leave RM. Going to wait until the end of this year, pretty much up to my 4th year anniversary (not long I know, quite long enough for me ). My question is can I basically cash in my pension? I'm not interested in making sure I get an income from my pension and all that jazz. I'm sorted, ta. I just want a lump sum.

You have to be over 55 years of age, if you are, four years membership is going to be too much for a trivial commutation payment, so you'll have to transfer your RM pension to another provider and take an Uncrystallised Funds Pension Lump Sum. With an UFPLS payment you'll get 25% of your fund tax free and the remainder will be taxable.
If you're too young you can't touch it until you reach 55 (rising to 57 from 2027)

[ArchieG]

I've decided to leave RM. Going to wait until the end of this year, pretty much up to my 4th year anniversary (not long I know, quite long enough for me ). My question is can I basically cash in my pension? I'm not interested in making sure I get an income from my pension and all that jazz. I'm sorted, ta. I just want a lump sum.

You have to be over 55 years of age, if you are, four years membership is going to be too much for a trivial commutation payment, so you'll have to transfer your RM pension to another provider and take an Uncrystallised Funds Pension Lump Sum. With an UFPLS payment you'll get 25% of your fund tax free and the remainder will be taxable.
If you're too young you can't touch it until you reach 55 (rising to 57 from 2027)

That's great! Thanks so much for the info. I'll be 55 by the end of the year

[ArchieG]

I've decided to leave RM. Going to wait until the end of this year, pretty much up to my 4th year anniversary (not long I know, quite long enough for me ). My question is can I basically cash in my pension? I'm not interested in making sure I get an income from my pension and all that jazz. I'm sorted, ta. I just want a lump sum.

You have to be over 55 years of age, if you are, four years membership is going to be too much for a trivial commutation payment, so you'll have to transfer your RM pension to another provider and take an Uncrystallised Funds Pension Lump Sum. With an UFPLS payment you'll get 25% of your fund tax free and the remainder will be taxable.
If you're too young you can't touch it until you reach 55 (rising to 57 from 2027)

That's great! Thanks so much for the info. I'll be 55 by the end of the year

I've started reading up about UFPLS (which I was unaware of before). So thanks again!

[RobertT]

Depending on exactly how much is in your pot, it may be possible to take it under the small pots rule.

Which basically means if the value is less the £10,000 you can withdraw the cash without triggering the Money Purchase Annual Allowance. Plus you may not need to transfer it, as already suggested.

Further info here: https://www.moneyhelper.org.uk/en/pensi ... -in-one-go

The minimum age for accessing any pension is actually due to increase to 57 in 2028!

[ArchieG]

Depending on exactly how much is in your pot, it may be possible to take it under the small pots rule.

Which basically means if the value is less the £10,000 you can withdraw the cash without triggering the Money Purchase Annual Allowance. Plus you may not need to transfer it, as already suggested.

Further info here: https://www.moneyhelper.org.uk/en/pensi ... -in-one-go

The minimum age for accessing any pension is actually due to increase to 57 in 2028!

Brilliant! Much appreciated.
My faith in this forum is being restored. (This is not to say I have any truck with the moderators - far from it).