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CMS and cashing in pension

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Hi! Hope someone can help as I don't know who else to ask. 

I am 55 in August and have a 19 year old daughter who I pay child support for, direct to my ex. 

I want to cash in one of my pensions this summer because I will need the money more at the moment than later on when I have an inheritance. I've been through the pension and tax side of things and understand that doing so will inflate my earnings so that it can be taxed. It's a pension pot of about 32k so after all the tax is deducted I'll get paid back about £27k I'm told. 


I understand all that side of things but then I just thought that this is probably going to mean that CMS will have me down as earning an extra £27k and alter my contributions to my ex hugely. I only earn about 20k a year so this will look like a massive pay rise won't it? 

Does anyone have any experience or knowledge of this because I'm now debating that I should stick to the tax free amount for now and take the rest next year when my daughter is 20. 

Any advice or thoughts would be really welcomed as this is all a bit out of my skill set, I'm a carer and it's all very confusing. 


Thank you 

Topic starter Posted : 12/05/2022 11:31 am
Famed Member


if the pension payout is taxable, then it will likely be taken into account by CMS. I would recommend you join this CMS support group for paying parents. lot of experienced members there:

Posted : 12/05/2022 7:46 pm
Illustrious Member

You only pay maintenance for your daughter for another year, I would seriously look at taking out a loan for a year until you stop paying maintenance, and then cash in the pension to repay the loan - it will save you the hassle and cost of CMS taking this into account.

Posted : 15/05/2022 7:15 pm

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