Changes to Jersey pension law, effective 1st January 2024, which affect the Small Pots and Triviality rules.
Pension Small Pots
If you are a member of a company pension scheme, you are no longer employed by the company, and the value of the pension pot is below £15,000, then you can access the whole fund, less 20% tax. There is no limit to how many times you can use this rule. If you have a pension pot from a previous employer and would like to discuss the options please contact us.
From the age of 60, the threshold to allow full access to your pension, less 10% tax, has increased to £50,000. The £50,000 level is post tax free cash meaning that if you have a pension where the tax free cash has not been taken yet, then you could take triviality with a pot valued around £71,400. The aggregated maximum of Triviality which can be used by one person is £50,000.
Why might Triviality be the right option?
Pension Trustee fees could be comparatively high due to the size of the pension creating a higher drag on performance. Please speak to your adviser if you wish to discuss this option further.