Pensions under £10,000

If the value of your Scheme benefits are less than £10,000 you may be able to take this as a small pot lump sum. This means that you can take your entire Scheme pension as cash. 25% of the lump sum would be tax-free, with tax paid on the remainder. Taking a cash lump sum in this way would not trigger the Money Purchase Annual Allowance (see the Tax and Allowances section for details); you would need to let the Schemes’ administrators know that you are taking a ‘small pot’ lump sum.

If you have benefits in more than one scheme, and your total savings are worth less than £30,000, you may also be able to take all your pension savings as a one-off lump sum. Please contact the Schemes’ administrators if you believe this could be the case for you.

Transfer values under £30,000

If you have a transfer value (excluding any DC benefits/AVCs) of under £30,000 you do not have to take financial advice in order to transfer, but your receiving scheme may still require you to have taken advice.

We recommend that you speak to an FCA-Registered Financial Adviser if you are considering transferring as there is a lot to think about. In most circumstances, financial advisers would typically recommend that taking your pension through the Scheme is the right retirement choice.