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TPT Retirement Solutions
FAQs

Can I take a cash sum?

CATEGORIES:

  • Members

Defined Benefit members

Tax-free cash sum

You can give up part of your pension and exchange it for a tax-free cash sum. This will leave you with a smaller pension, which would have to be taken at the same time as the cash sum.

The maximum tax-free cash allowed will be included in your retirement quotation and you can take any amount you wish up to the maximum amount.

Small pot

You may be able to take taxable one off lump sum if the value of your benefits in the scheme including those under other memberships of the same scheme is less than £10,000, including benefits that have previously been taken.

The £10,000 value is for assessing eligibility, not the sum we would pay. The cash allowed will be included in your retirement quotation if this option is available to you.

Trivial commutation

You may be able to take a trivial commutation if the value of your benefits across all registered UK pensions schemes is less than £30,000, including benefits that have previously been taken. The £30,000 value is for assessing eligibility, not the sum we would pay. The cash allowed will be included in your retirement quotation if this option is available to you.

 

Defined Contribution members

You can take your fund as a one off lump sum where 25% would be tax free and 75% would be taxable.