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Flexi plan and bonus plan lump sum

25 Jun 2019, 19:46

I plan to take my AVC Flexi plan and Bonus plan lump sum at 60 instead of taking a lump sum out of my NRA 60 Pension C with 35 Years service aged 60. At present I have a Zurich fund of £26,456 and plan to increase my Flexi plan to £40 a week. Am now aged 56 and will have another 4 years to add to my AVC fund how much lump sum can I save before tax any advice would be very much appricated.

Flexi plan and bonus plan lump sum

25 Jun 2019, 20:21

You can take a maximum tax free lump sum of 25% of your total pot value. Have a look at page 12 of your plan guide for more info. It's available here: https://www.royalmailpensionplan.co.uk/ ... ts/library

If you are over 25% at the time of taking your pension, then any excess can be:

1. Taken as a taxable lump sum.
2. Used to buy an annuity if over £1,000
3. Commuted to provide more pension if under £1,000

Or else it is possible to transfer out either Flexiplan or Bonusplan to another DC pension arrangement before you take your RMPP/RMSPS benefits and then draw that down, which might be more beneficial from a tax point of view, depending on your personal circumstances.

Flexi plan and bonus plan lump sum

25 Jun 2019, 20:37

Thanks for the information Robert.

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