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<p>The small pots and trivial commutation rules are permissive sets of tax rules which
pre-date the pension freedoms reforms introduced in 2015. The rules may allow an individual
to access their pension as a lump sum if they are at least 55 years old, or retiring
at an earlier age because of ill-health, and the value of the payment does not exceed
£10,000 for small pots, or £30,000 for trivial commutation. The rules limit what arrangements
can be accessed in this way.</p><p> </p><p>As the regulations are permissive, there
is no obligation on providers to offer small pot lump sums to consumers. The Government
has no plans at present to amend existing legislation to require insurers to commute
annuities in payment.</p>
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