What are the triviality rules?Thu Feb 12 10:16:50 GMT 2015
You can be paid your pension benefits as a lump sum under a rule called triviality. You have to be at least 60 and the value of all of your registered pension scheme benefits (whether they're being paid or not) can't be more than £30,000 (or £18,000 if you had already taken some of your benefits as a trivial commutation lump sum before 27 March 2014). You also have to meet certain HM Revenue & Customs conditions.
Your pension benefit options are changing
The government have proposed a change from April 2015 that will let you take all your pension savings as a lump sum from age 55, rather than having to buy a retirement income such as an annuity. Part, or depending on circumstances, all of this lump sum would be subject to your applicable rate of tax under Pay As You Earn. Please consider these changes carefully before you act, as they may change your decision on how you take your pension benefits. You can find out more about the changes in the Money Advice Service leaflet Your pension: it’s time to choose (PDF - 1.4mb)(Opens new window).