Anyone who is a controlling director of an employer using The People’s Pension, or connected to a controlling director (such as a family member) can’t take a small pot lump sum of £10,000 or less. HM Revenue & Customs state that the member must be at ‘arm’s length’ from any sponsoring employer of the scheme paying the small lump sum.
Members who fall under this bracket can however continue to leave their savings with The People’s Pension or transfer out. They should check before doing so whether they’ll be able to take their small pot lump sum from the receiving scheme after they transfer.
You can also speak to a Financial Conduct Authority-regulated adviser to get advice based on your personal circumstances. If you don’t already have an adviser, you can find one on the Unbiased website. Please note an adviser may charge for their advice. You can also speak to MoneyHelper, who provide free and impartial guidance.
If you’d like to find out more about this and other information about small pot claims, please visit HM Revenue & Customs dedicated lump sums and small pensions payments manual.