Annuities - Trivial Pensions

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Trivial Pensions

If an investor's total pension funds amount to less than 1% of the lifetime allowance (this stands at £1.5 million for 2006 and is set to rise over 5 years to £1.8 million), it is possible to take the funds as a cash sum rather than having to take it, part at least, in the form of a pension.

For anyone in this situation, with a fund (which must take into account all their pensions for example company pension, personal pensions, AVCs and any pensions already in payment) of less than £15,000 (for 2006), 25% of the withdrawal is tax free and it can be taken at any time between their 60th and 75th birthdays.

It is always a good idea to seek professional financial advice when planning to take any retirement benefits as making the right decision will affect income for life and potentially that of any dependents left after death. If you are considering taking your pension funds as a lump sum, it is a good idea to talk to a professional adviser to make sure this is the best option.

Our independent experts can help you to make the right decision and understand the implications of the recent changes to pensions. To talk to an adviser about your situation, please complete our Quick Enquiry Form and we will arrange for you to be contacted. Alternatively, you can call us on 0845 106 0505.

For many other alternative ways to build up a fund for retirement, visit us at www.Investments.co.uk

Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.

1998 - 2007 UK Pensions - Planning before, at the onset and during retirement.