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Pensions.

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Denisdiamond | 09:22 Fri 03rd Apr 2015 | Business & Finance
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Although I am 65 tomorrow, I intend to carry on working for a while.Can I cash in my pension policy and receive a 25% lump sum, even though I won't be retiring ? Thank you.
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From 6 April yes, as long as it not a Defined Benefits Pension. But be careful re the tax you will pay. The remaining 75% is taxable and added to your salary could push you into a higher tax bracket for the year. It will be taxed before it is paid out to you and you will have to reclaim any overpayment.
There may be limits (age 55 min ?) but as far as I am aware you can trigger (cash in ?) your pension any time you wish; but the earlier you do so, the smaller each regular payment.

I know I enquired about 18 months ago and was quoted such a reduced figure that I thought the actuary was having a laugh. Not that I was looking for any 25% lump sum.

Wasn't there also something about the pension/finance company having to offer to do this lump sum option, and it not being obligatory them to offer it ?

As stated it seems you can't get lump sums from DB pensions unless it is in the original agreement. (All mine show a lump sum plus regular pension payment also.) I think you might be able to persuade the finance company to transfer out it to a less attractive "pot" option, if you are "lucky"; and take from that. But I'm unsure that is a good idea. I'm certainly not presently considering it.
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Thank you all.
If you can get hold of a Daily Telegraph today (Sat) it may help you. The Money sections has 101 questions and answers on this subject.

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