Trivial commutation

Taking a small pension pot as a lump sum. This can only be done if the total value of all your pension funds are worth less than £30,000 and you are at least 60 years old. From April 2015, the minimum age is being reduced to 55. The first 25% is tax-free, but you will have to pay income tax on the rest.

See also: Lump sum, Small and stranded pension pots

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