Personal pension rules could spark 'granny farming'

Today the Treasury announced it would extend the rules which allow people to withdraw occupational pension pots of below £2,000 as lump sums to include personal pensions as well. The Treasury had originally restricted the commutation of small pots to occupational schemes because these required an employer to be set up, and so were harder to arrange as part of a scam. Personal pensions have no such restriction, and for this reason, the Treasury said investors can only commute two £2,000 personal pots over their lifetime, to prevent abuse. But Tom McPhail, head of pensions research a...