Small pension pots

[Firstshoes]

I have two small pension pots that I do not need. In total they are roughly 7K. I am 54 this year. Does anyone know if it is correct that I can cash these in when I'm 55?

It’s going to be 57 when you take take 25% out

Yes, small pots (under £10k each) can be cashed in. 25% is tax free, the rest taxable. Currently you can do this from age 55 but the minimum age is rising to 57 in 2028. Do check for any specific rules with your pension providers though just in case there’s something preventing this (you may need to transfer them elsewhere first). Shouldn’t be anything, but you never know.

You can take out 25% when you are 55, this changes to April 2028 where you will have to wait till you are 57.

Thanks for the replies. I will be able to do this at 55 but will it only be 25% or the whole amount I can take?

You will be able to take the whole amount under the small pots rule but only 25% will be tax free. Do check with your pension providers though just to make absolutely sure this is allowed under the scheme rules. It should be but you never know.

You can cash in up to three small pots of 10k or less, 25% will be tax free.

That's great. Thank you for the advice. I'll give them a call tomorrow

You need to ask uour pension scheme