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Lump Sum

14 Feb 2020, 18:05

I am taking my age 65 benefits 4 years early
Option 2 of my age 65 flexible pension estimate says Maximum lump sum £10800 plus a small pension. Is the lump sum tax free or is only 25% of it tax free?
I am full time

Lump Sum

14 Feb 2020, 18:54

monaco wrote:I am taking my age 65 benefits 4 years early
Option 2 of my age 65 flexible pension estimate says Maximum lump sum £10800 plus a small pension. Is the lump sum tax free or is only 25% of it tax free?
I am full time


The max lump sum will be 25% of your total pot as that is the most they can offer and so will all be tax free.

Lump Sum

14 Feb 2020, 19:22

Steve_claret wrote:
monaco wrote:I am taking my age 65 benefits 4 years early
Option 2 of my age 65 flexible pension estimate says Maximum lump sum £10800 plus a small pension. Is the lump sum tax free or is only 25% of it tax free?
I am full time


The max lump sum will be 25% of your total pot as that is the most they can offer and so will all be tax free.

Generally that is true, but you will also have to factor in the Cash Balance(DBCBS).
That is only 'attached' to the 2012-2018 RMPP benefits. If it's more than 25% of those, tax may be payable on anything over. But it's not likely to be much.

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