Taking pension cash balance..

[roadrunner bill]

I'm 55 soon.... I got my statement..by post..

And says my cash balance pension is 28k....

So will you get all that as a payment for 2018 to 2024 pension ?

Thank you..

[RobertT]

The Cash Balance is usually paid out as a lump sum with your Age65 benefits, some of it may be tax free but probably not all of it.

Alternatively you can transfer it out to a personal pension for more flexibility. As it's less than £30k you shouldn't need an IFA.

[roadrunner bill]

Thank you, for your info..

[mags999]

Have just put in for my nra65 pension 3 years early. cash balance 30000)grand does anyone know if this will be reduced for taking it early .thanks

[david3595]

Online pension calculator on RMPP website shows a deduction if taking early on DBCBS monies

quote=mags999 post_id=1105692 time=1729514390 user_id=79914]
Have just put in for my nra65 pension 3 years early. cash balance 30000)grand does anyone know if this will be reduced for taking it early .thanks
[/quote]

[RobertT]

Going by what the calculator churns out and what your fund is worth 'today', not what it might be worth at 65, I make the reduction around 1.40% per year.

Although it does say 'The rate at which benefits are reduced for taking them early can change from time to time'. So that isn't set in stone.

The taxman will take his share too.

[Chris19]

Can I take my DBCBS early and leave my NRA 60 & 65?

[RobertT]

Can I take my DBCBS early and leave my NRA 60 & 65?

You can transfer it to a personal pension and then access it from there as long as your aged least 55.
Normal DC pension rules will then apply to it: https://www.moneyhelper.org.uk/en/pensi ... on-schemes

If it's worth over £30k you'll need an IFA to 'sign it off', but most won't be interested as it's a low value transaction or their charges will make it very expensive.

[Chris19]

Hi Robert, thanks, that's good news. I'm over 55 & it's worth less than £30,000.

[mags999]

Thanks robert that seems a very small reduction for dcbs fund but I'd be happy with that

[mr hil.]

That's interesting news regarding the reduction, my figures are now just over £30K but if I transfer the DBCBF early and lose enough to take me below the £30K threshold I could save a few thousand by not having to get an IFA's approval

Alternatively how long will it take RobertT to qualify as an IFA

[RobertT]

That's interesting news regarding the reduction, my figures are now just over £30K but if I transfer the DBCBF early and lose enough to take me below the £30K threshold I could save a few thousand by not having to get an IFA's approval

My understanding is the reductions to the DBCBS only apply if you're taking it with your other RMPP benefits before NRA.
If you transfer it's at face value.

Alternatively how long will it take RobertT to qualify as an IFA

Lol!