In some situations it is possible to turn small pensions into a cash lump sum rather than drawing them as income. There are also ways to turn bigger pensions into cash, but watch out for scams.
When you want to start drawing a pension from an occupational pension scheme or personal pension, you can usually take a quarter of your savings as tax-free cash (sometimes called a pension commencement lump sum or PCLS). The rest must be drawn as a pension.
But in some situations, you can take the whole of your pension savings as a cash lump sum. This can seem attractive, if you have debts to pay off, want to make a large purchase or want more control over your money.
Turning small pensions into cash
If your pension savings are low, they will not buy much pension and you may have problems finding a provider willing to pay out only a small amount of income.Continue Reading