Cash in pension at 55

[Ohallright]

Hi, I have a small pension pot, which got left behind when I was tuped across to a new employer. The main bulk was transferred and has been built up nicely, so that I have now retired after being made redundant.

So I plan to live off my redundancy for the next 4 years and then use my main 2 pensions (one final salary and one a pot of money) to live on at 60.

There is approx 7-8k in a pot which was left with old employer, which I would like to cash in. But because it is too small to generate an annuity , they won’t let me have it. They said I would have to move it to another provider, then cash it in (draw down) which means quite steep fees.

Does anyone know of a firm who will accept the money and pay it out to me for a small fee. The best I have found is pensionBee who will charge £400 + vat.

I appreciate it will mean some paperwork, but it is such a small amount of capital, the % charge is high.

NB I am very well provided when I reach 60, so will not need to enhance income later on, but a nice extra holiday now would be great.

Aviva accept transfers in for no fee, and also allow draw down for no withdrawal charge. There may be a qualifying period though.
Does your existing company charge for the transfer out?

A better place to ask would be the MSE pensions board.

Thanks for replying, I will look into Aviva, but I think they have a minimum balance. I will look at MSE.

I have been told no charge to transfer out.

Just to say (in case anyone has a similar issue) all sorted a couple of months ago. Aviva were very efficient and didn’t charge a penny, as I wasn’t leaving the money there. My original holder was very difficult......