The Lemon Fool

I seem to remember reading that pensions under a certain amount could be taken as a lump sum?

I am in the process of tidying up some pensions into my main SIPP. I have about 5k left in a HL one with some dross investments that are all under water.

Not sure what to do with this. If this could be taken as a lump sum later due to the small amount I might just leave it. I have 13 years until I can take it anyway....

Does anyone know the rules on this or did I imagine it?

Thanks

Nick

Ilikebeer wrote:I seem to remember reading that pensions under a certain amount could be taken as a lump sum?
Nick

I suspect that you are talking about the "small pot rule". There are limits to how often you can use it, and I don't know the in's and out's of it, but I'd start with the description here.

https://www.gov.uk/tax-on-pension/tax-free

You can usually take any pension worth up to £10,000 in one go. This is called a ‘small pot’ lump sum. If you take this option, 25% is tax-free.