Got my statement today

[RobertT]

Also assuming you are correct £20477 is £362 per week after tax (no NI due from pension income).

Based on NW's figures £11,700 will be from his pension and the rest comes tax free from his AVC's.

[NWpostie]

Yes similar amount in my AVCs Flexiplan is £59k Bonus plan £11k, plus my bank savings which should cover my lump sum, I have about 2 ½ to go before my 60.

I'm tempted to take the NRA65 at the same time.

The biggest concern is the tax factor.

Based on those figures, you should be able to take all your AVC's tax free with Age60.

Therefore your main tax concern is probably how much you pay when taking Age65/DBCBS.

Cheers that's reassuring

I did a quick crunching of numbers
I took 10% away from the £13030 as a contingency for variation and tax.


Giving me a figure of £11,727 plus my Flexiplan and Bonusplan added together making £70,000 divided over 8 years in case the state pension age gets moved back which gives me £8,750 a year.

Add that together
£11,727 NRA60
+
£8,750 AVC
=£20,477 a year

Divided by 12 months = £1,706
Divided by 52 weeks = £393

What do you think ?


Assuming this is correct, I could live comfortably without claiming NRA65, one reason I was thinking of claiming it early is I would have to fight Capita again which I'm not looking forward to going by what other members on here have mentioned.

Also assuming you are correct £20477 is £362 per week after tax (no NI due from pension income).

£11,727 is the pension backfilled with £8,750 AVC which is the lump sum which should be under or at the 25% threshold.

[freespeech]

Yes similar amount in my AVCs Flexiplan is £59k Bonus plan £11k, plus my bank savings which should cover my lump sum, I have about 2 ½ to go before my 60.

I'm tempted to take the NRA65 at the same time.

The biggest concern is the tax factor.

Based on those figures, you should be able to take all your AVC's tax free with Age60.

Therefore your main tax concern is probably how much you pay when taking Age65/DBCBS.

Cheers that's reassuring

I did a quick crunching of numbers
I took 10% away from the £13030 as a contingency for variation and tax.


Giving me a figure of £11,727 plus my Flexiplan and Bonusplan added together making £70,000 divided over 8 years in case the state pension age gets moved back which gives me £8,750 a year.

Add that together
£11,727 NRA60
+
£8,750 AVC
=£20,477 a year

Divided by 12 months = £1,706
Divided by 52 weeks = £393

What do you think ?


Assuming this is correct, I could live comfortably without claiming NRA65, one reason I was thinking of claiming it early is I would have to fight Capita again which I'm not looking forward to going by what other members on here have mentioned.

Also assuming you are correct £20477 is £362 per week after tax (no NI due from pension income).

£11,727 is the pension backfilled with £8,750 AVC which is the lump sum which should be under or at the 25% threshold.

Ideal, under the personal allowance so all tax free then.

[rogersh]

Can someone please clarify how the Pension Increase Amount is calculated on the NRA 60 pension.

[RobertT]

Can someone please clarify how the Pension Increase Amount is calculated on the NRA 60 pension.

It's the total amount of inflationary increases you've received over the years.

[rogersh]

Can someone please clarify how the Pension Increase Amount is calculated on the NRA 60 pension.

It's the total amount of inflationary increases you've received over the years.

Thank you Robert.

[rogersh]

Robert, If you could indulge me once again on your calculation on the age 65 benefits for someone who wants to increase the lump sum payment, asking for a colleague!

"Estimate" current value of annual pension NRA 65 = £1,500 x 20 = £30,000 divided by four = £7,500 (have I got this right ?)
Is this amount then added to the DBCBS total ? with 25% being tax free.

[RobertT]

There's two ways to work things out depending on whether you want to give up some pension to fund the lump sum(1), or use the DBCBS to fund it(2).

1. Pension x 20 / 4 = max tax free lump sum from pension.
In money terms based on your figures:
£1,500 x 20 = £30,000 / 4 = £7,500
The pension will then be reduced by roughly £50 for each £1,000 in lump sum, so in your case by about £375.
The whole DBCBS will then be paid out as a UFPLS, meaning 25% of that will also be tax free and the remainder classed as income and taxed accordingly.

2. Pension x 20 / 3 = max tax free lump sum from DBCBS
In money terms:
£1,500 x 20 = £30,000 / 3 = £10,000
The pension will stay at £1,500, while the remainder of the DBCBS will be paid out as a UFPLS.

[rogersh]

Thank you once again Robert for taking the time to reply to my query.
Genuinely for a colleague, I know not to give advice on Pensions, but the info you provide is very useful for those (majority I think) who don't have a clue.