Changes to small pensions announced

Pension savers aged 60 or over are to be given easier access to their small pension schemes from April 6 next year, the Government has said.

Members of registered pension schemes of £2,000 or less will be able to access them by paying a cash lump sum instead of being made to purchase an income with it.

According to HM Revenue and Customs, the changes will affect around 25,000 people who have a secured pension income of more than £18,000 with at least one personal pension of less than £2,000 that is not yet in drawdown.

From April 6 2012, people aged 60 or over with small pension schemes of £2,000 or less can have two lump sum payments in their lifetime regardless of their total pension wealth, the Government has said.

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