Over 60’s to be given right to cash in small pensions

The days of people being forced to buy an Annuity with a small pension fund could be over if new proposals from the government become law. The draft Finance Bill 2012 contains proposals, which if passed, will allow people over the age of 60 to cash in up to two personal pension plans, with values of less than £2,000 each, regardless of whether they have other pension savings. Up to 25% of the pension pot will be available as a tax free lump sum, with the balance being added to the individual’s income and potentially being subject to income tax. Triviality Currently it is ...