Pensions.

[Denisdiamond]

Although I am 65 tomorrow, I intend to carry on working for a while.Can I cash in my pension policy and receive a 25% lump sum, even though I won't be retiring ? Thank you.

[ubasses]

From 6 April yes, as long as it not a Defined Benefits Pension. But be careful re the tax you will pay. The remaining 75% is taxable and added to your salary could push you into a higher tax bracket for the year. It will be taxed before it is paid out to you and you will have to reclaim any overpayment.

[Old_Geezer]

There may be limits (age 55 min ?) but as far as I am aware you can trigger (cash in ?) your pension any time you wish; but the earlier you do so, the smaller each regular payment.

I know I enquired about 18 months ago and was quoted such a reduced figure that I thought the actuary was having a laugh. Not that I was looking for any 25% lump sum.

Wasn't there also something about the pension/finance company having to offer to do this lump sum option, and it not being obligatory them to offer it ?

As stated it seems you can't get lump sums from DB pensions unless it is in the original agreement. (All mine show a lump sum plus regular pension payment also.) I think you might be able to persuade the finance company to transfer out it to a less attractive "pot" option, if you are "lucky"; and take from that. But I'm unsure that is a good idea. I'm certainly not presently considering it.

[Denisdiamond]

Thank you all.

[ubasses]

If you can get hold of a Daily Telegraph today (Sat) it may help you. The Money sections has 101 questions and answers on this subject.