Any pot worth less than £10,000 is classified as a “small pot pension”. Different rules apply to pots of this size, and the money held in them can often be withdrawn in a more tax-efficient way.

Taking a lump sum from your pension can be a fantastic way to pay off your mortgage, help out the kids or boost your savings. But understanding the rules is crucial if you want to make the most of ...

Unfortunately, few pension plans offer the flexibility to combine lump sum and annuity payments, according to the Consumer Financial Protection Bureau. In fact, If your pension is relatively small ...

This will not count towards your lump sum allowance, which normally caps the maximum tax-free cash you can take from your pension at £268,275. The remaining 75 per cent of the small pot will be taxed ...

Weigh the pros and cons of pension payments versus a lump sum. One is made for the remainder of a retiree's life. The other allows you to spend or invest the money.

Wealthy savers are warned that a new “catch in the small print” of reforms to the lifetime allowance may put them at risk of overpaying tax on pension withdrawals.. The warning comes from ...

Pensions worth less than £10,000 can be taken as a lump sum and are easily transferred to another provider. But the real advantage is that you can cash them in without affecting your pension ...