{"id":1175,"date":"2015-03-03T09:24:44","date_gmt":"2015-03-03T09:24:44","guid":{"rendered":"http:\/\/www.newsfin.co.uk\/news\/?p=1175"},"modified":"2015-03-03T09:24:44","modified_gmt":"2015-03-03T09:24:44","slug":"trivial-commutation","status":"publish","type":"post","link":"https:\/\/www.absolutefinance.net\/wordpress\/?p=1175","title":{"rendered":"Trivial commutation"},"content":{"rendered":"

Taking all of a pension pot as a lump sum<\/h3>\n

When someone reaches retirement, they can take up to 25% of their pension as a tax-free lump sum (called the\u00a0‘pension commencement lump sum’). The remaining 75% has usually been used to\u00a0purchase an annuity, a financial product that provides them with a guaranteed income for life, or been left invested, allowing them to take a portion of their pension pot each year to provide an income \u2013 known as\u00a0‘income drawdown’.<\/p>\n

However, if their pension pot is quite small, they might feel that they would prefer to take all of it as a lump sum \u2013 this is what\u00a0trivial commutation\u00a0means. The entire pension pot can only be taken as a lump sum if it is below \u00a330,000. Up to three pension pots can also be taken that are no bigger than \u00a310,000 each as lump sums.<\/p>\n

When someone takes or trivially commutes their pension pot, the first 25% will be tax-free; however, they will have to pay Income Tax on the remaining 75%.<\/p>\n","protected":false},"excerpt":{"rendered":"

Taking all of a pension pot as a lump sum When someone reaches retirement, they can take up to 25% of their pension as a tax-free lump sum (called the\u00a0‘pension commencement lump sum’). The remaining 75% has usually been used to\u00a0purchase an annuity, a financial product that provides them with a guaranteed income for life, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[128,67],"tags":[],"_links":{"self":[{"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/1175"}],"collection":[{"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1175"}],"version-history":[{"count":0,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/1175\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}