Age 65 options help

[the dragon]

Hi, can someone please advise me on my options concerning my 65 benefits. I've tried to ring helpline but it's continually busy.
Basically I want to take as much "cash" out as possible on my retirement date. Therefore, can I take option 2 and then take my whole cash balance out in full as well? I realise there are tax liabilities if I do this but I'm prepared for the hit. If I can't take option 2 and my whole cash balance out together, what other option do I have to get as much cash as possible. Thanks in advance.

[SeanMc]

Yeah you can take Opion 2 but you have to wait 16 weeks for payment of your cash balance.

[the dragon]

Thanks for reply....good news then except for the 16 weeks wait
Cheers

[NorthernBoy]

Dragon (anyone)

Is the pension supplement of £440 paid on top of the regular income payments stated? Or is it included in the figures given.

Thanks

[Wullie10]

Ok probably stupid question of the day.
Option 1a £2500 pa + £17900 lump sum tax free
Option 2 £1500 pa. + £13,400 lump sum tax free.

Why pick Option 2.?

[SeanMc]

Option 2 has Cash Balance paid separately which isn't shown here.

[Wullie10]

Option 2 has Cash Balance paid separately which isn't shown here.

This will be the one where 25% is tax free and the rest taxed ( quite heavily) if you continue working ? And could possibly Transfered. So option 2 would be tax free lump sum plus the cash balance 25% free 75% taxed and any AVCs ( tax free ) mighty confusing.

[RobertT]

Here's a simple explanation of the quote:

1. Full pension and no tax free cash, DBCBS paid as as a UFPLS.
1a. Full pension with the DBCBS funding the tax free cash with the remainder paid as a UFPLS.
2. Reduced pension with generates the 25% tax free lump sum, with the DBCBS paid as a UFPLS.

There is also the option to take a smaller lump sum with option 2, meaning you don't give up as much pension.

*UFPLS = Uncrystalised Funds Pension Lump Sum, the first 25% of which is tax free.

[SeanMc]

Option 2 has Cash Balance paid separately which isn't shown here.

This will be the one where 25% is tax free and the rest taxed ( quite heavily) if you continue working ? And could possibly Transfered. So option 2 would be tax free lump sum plus the cash balance 25% free 75% taxed and any AVCs ( tax free ) mighty confusing.

[roadrunner bill]

I thinking of taking my 65 benefits,,
Is option 2 .
A reduced pension plus lump sum plus the cash balance ? My cash balance is 30k.

[RobertT]

Is option 2 a reduced pension plus lump sum plus the cash balance ? My cash balance is 30k.

Yes.

Here's a simple explanation of the quote:
2. Reduced pension with generates the 25% tax free lump sum, with the DBCBS paid as a UFPLS.

*UFPLS = Uncrystalised Funds Pension Lump Sum, the first 25% of which is tax free.

[roadrunner bill]

Is option 2 a reduced pension plus lump sum plus the cash balance ? My cash balance is 30k.

Yes.

Here's a simple explanation of the quote:
2. Reduced pension with generates the 25% tax free lump sum, with the DBCBS paid as a UFPLS.

*UFPLS = Uncrystalised Funds Pension Lump Sum, the first 25% of which is tax free.

Sorry.. I'm a bit thick... you had already explained it..

[Wullie10]

Thanks for reply....good news then except for the 16 weeks wait
Cheers

Is this 16 weeks wait for the cash balance set in stone ? If so it could work out good for me as my Birthday is end of October. So when it's paid late February to early March I can retire just in time for new tax year. OR can you postpone the payment until the start of the new tax year ( then retire )
In the example. £30,000 £7,500 is tax free lump sum. £22,500 is taxed as income.would probably push you into 40% tax range if you include wages and pension.