Can I take a small pension pot as a lump sum when I transfer or consolidate to Retiready?
Updated 23 March 2016
If you have pension benefits under a personal pension plan (like your existing Aegon pension or a Retiready Pension) and meet certain conditions, you’re able to take the pension fund as a lump sum. Normally 25% of this can be tax free. The main conditions are:
• you must be at least 55 years old. You may be able to take income before age 55 if you have a protected low pension age or meet the ill-health conditions.
• your pension arrangement must be worth no more than £10,000
• you can only exercise this option three times in your lifetime.
A Retiready Pension can have only one arrangement. If your Retiready Pension was worth more than £10,000, you wouldn’t be able to use the small pots option to take the benefits as a lump sum, because we will not split it into two arrangements for you.
You may be able to take small pots lump sum from age 55 or earlier if you have a protected low pension age or meet the ill-health condition. Find out more at Your Retirement Planner.