08 Sep 2019, 08:52
Has anyone recently retired and if so did they give up some of their pension for a lump sum (section c members). If so, can they tell me what the current conversion rate of pension to lump sum is?
I seem to remember from a previous thread that it was around £20 lump sum for every £1 given up.
08 Sep 2019, 13:29
I have no experience of this, but the 20:1 ratio is probably fairly accurate. However it can only really be used as a guide because rates can be different depending on your age in particular, and there maybe other factors too decided by the scheme actuary.
Also bear in mind the total lump sum allowable is 25% of your 'total pot value', which is worked out as pension x20 + standard lump sum(section A/B) + AVC's(if applicable).
The best way to find out is to get yourself a quote. If it doesn't actually tell you the rate, it shouldn't be too difficult to work it out from the figures provided.
08 Sep 2019, 19:11
I was ‘consulted’ about an illustration from a member for NRA 65 last week where there was no AVC involved and NRA 60 had already taken. I worked out the ratio to be 18.9 to 1 !