EVR Pension Lump Sum Payment

[Fishless]

Has anyone taken the smaller pension with the bigger lump sum and can you confirm whether you had to pay tax on the lump sum and at what rate? My DOM has said I won't pay tax on it as it is from my pension pot but I am not sure.

Thanks for any advice.

[taxi4leighton]

i was 60 last year
took bigger lump sum
smaller pension
no tax on lump sum
but obviously i am taxed on pension
most people take bigger lump sum

[mudmonster]

hi ,just a quick question on evr ,how much is it worth if you take no lump sum, after 30 years service thanks

[baldrick]

hi ,just a quick question on evr ,how much is it worth if you take no lump sum, after 30 years service thanks

When I took VR in 2013 I was given the option of converting my lump sum to pension. The conversion rate was 23.7 : 1. So for giving up £23,700 of my lump sum I got an extra £1000 pa on my pension.

You should bear in mind that you don't pay tax on the lump sum, but will pay tax on any pension over £10,600 pa.

[Edward Hunter]

When I took VR in 2013 I was given the option of converting my lump sum to pension. The conversion rate was 23.7 : 1. So for giving up £23,700 of my lump sum I got an extra £1000 pa on my pension.

You should bear in mind that you don't pay tax on the lump sum, but will pay tax on any pension over £10,600 pa.

So baldrick, Am i right in thinking you will only be in profit if you live to 83? If thats the case there is no way i would take that chance lol. Give me the money!!

[baldrick]

When I took VR in 2013 I was given the option of converting my lump sum to pension. The conversion rate was 23.7 : 1. So for giving up £23,700 of my lump sum I got an extra £1000 pa on my pension.

You should bear in mind that you don't pay tax on the lump sum, but will pay tax on any pension over £10,600 pa.

So baldrick, Am i right in thinking you will only be in profit if you live to 83? If thats the case there is no way i would take that chance lol. Give me the money!!

I intend to live to 100, just to get my money's worth.

[mudmonster]

any idea what lumpsum & pension would be at 55 with 30 years service

[Glenno]

any idea what lumpsum & pension would be at 55 with 30 years service

http://www.royalmailchat.co.uk/communit ... =1&t=65698" onclick="window.open(this.href);return false;

[baldrick]

any idea what lumpsum & pension would be at 55 with 30 years service

http://www.royalmailchat.co.uk/communit ... =1&t=65698" onclick="window.open(this.href);return false;

That's the VR Ready Reckoner, Glenno. mudmonster is asking about pension and lump sum.

Mudmonster, have a look at your RM Pension Statement which you should have received last August. It should give you a figure for how much you would receive in pension and lump sum, at the end of the previous tax year, and how much you would receive at 60.

If you are being offered EVR/VR it will be enhanced slightly, and you also get 26 weeks VR payment.

If you do not still have your RM Pension Statement you could try ringing the Pensions Helpline 0114 241 4545 to ask how much your pension would be.

Edit: If your pensionable earnings are £24k pa, my best guess is that your pension would be somewhere around £8.5 - £9k pa and your standard lump sum would be 3x that, ie £25.5 - £27k. But you can exchange some of your pension for a bigger lump sum, or some of your lump sum for a bigger pension.

[mudmonster]

thanks for that Baldrick,i will look into it