A triviality of pension rules
03-Nov-09 by Tim Moore
Gaining access to the money in one's Pension is something that many people wish they could do. There is however, a way. Rules known as triviality rules are the guidelines for anyone wishing to withdraw their pension cash and are stated as thus:
- Must be aged between 60 and 75.
- Total value of all pension schemes must not exceed £17,500.
- Value of a money purchase pension is the value of the pension pot.
- The value of a pension from a defined benefit (final salary) scheme is arrived at by multiplying the pension by 20 if it is not yet being paid, or by 25 if it is in payment.
- If you have more than one pension arrangement (value under £17,500) that you want to in, all must be cashed in within 12 months of cashing in the first one.
- Only 25% of the encashment is tax free and the balance is taxable.
- The rules of the pension scheme have been amended to permit full encashment.
