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Question about recent UK pension reform

Question about recent UK pension reform

Old Dec 20th 2005, 11:18 pm
  #1  
Mr. Grumpy
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Default Question about recent UK pension reform

I know this was discussed a while ago before the proposals came out, but....

Is there any definite info on whether small UK pensions can be cashed out without a penalty before they come to term?
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Old Dec 21st 2005, 2:30 pm
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Default Re: Question about recent UK pension reform

Originally Posted by BritGuyTN
I know this was discussed a while ago before the proposals came out, but....

Is there any definite info on whether small UK pensions can be cashed out without a penalty before they come to term?
Usually pensions can only be taken after age 50. Because they receive tax relief from the Govt, they are essentially untouchable until minimum age 50. (Unless youre a professional sportman in which case 35!). They can only be rolled out of one fund and into another.. they cant be liquidated.
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Old Dec 21st 2005, 8:20 pm
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Default Re: Question about recent UK pension reform

Originally Posted by CarlM
Usually pensions can only be taken after age 50. Because they receive tax relief from the Govt, they are essentially untouchable until minimum age 50. (Unless youre a professional sportman in which case 35!). They can only be rolled out of one fund and into another.. they cant be liquidated.

Someone had mentioned that this may well be changing this year
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Old Dec 21st 2005, 8:30 pm
  #4  
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Default Re: Question about recent UK pension reform

Originally Posted by BritGuyTN
Someone had mentioned that this may well be changing this year

I'm refraining from answering this since I'm not licensed to advise on pensions in the State of Tennessee nor the Kingdom of Blighty and I might upset those who so are.

There's a funny little man pops up occasionally who claims to be well versed in these matters, but the only advise he ever gives is to PM him for a great deal. Perhaps if he pops again, you could PM him and then give us the info on this thread?
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Old Dec 22nd 2005, 12:36 pm
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Default Re: Question about recent UK pension reform

Originally Posted by BritGuyTN
Someone had mentioned that this may well be changing this year
I havent heard to that effect - and UK Govvies are after people putting more money into pensions for longer to deal with the crisis of shortfalls, so letting people withdraw seems unlikely IMHO!
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Old Dec 22nd 2005, 1:20 pm
  #6  
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Default Re: Question about recent UK pension reform

Originally Posted by CarlM
I havent heard to that effect - and UK Govvies are after people putting more money into pensions for longer to deal with the crisis of shortfalls, so letting people withdraw seems unlikely IMHO!

I believe the changes come in this April 1. But on a quick Google, there wasn't much to find.
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Old Dec 22nd 2005, 2:36 pm
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Default Re: Question about recent UK pension reform

Originally Posted by BritGuyTN
I know this was discussed a while ago before the proposals came out, but....

Is there any definite info on whether small UK pensions can be cashed out without a penalty before they come to term?

This is a private pension right?
I asked the Pru and they had no idea about the planned changes
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Old Dec 22nd 2005, 2:41 pm
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Default Re: Question about recent UK pension reform

Originally Posted by Chorlton
This is a private pension right?
I asked the Pru and they had no idea about the planned changes

Working from memory here (so the info's dodgy and not researched!) but there seemed to be some notion going about that you would be able to do something with a non-government OAP in the near future. If it were under a certain amount (I think GBP 15k was mentioned) you could just cash it in. If above, you could take control by xferring it to a SIPP or similar.
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Old Dec 24th 2005, 3:36 am
  #9  
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Default Re: Question about recent UK pension reform

Originally Posted by CarlM
..... (Unless youre a professional sportman in which case 35!). ....
Even that depends on the sport, the Inland Revenue (UK) has a schedule of retirement ages for certain specific occupations (mostly professional sports).
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