Lump sum at 55 process.

[balintober]

Hi
I'm a deferred member (June 1987 - January 2015).
I'm 55 in July and would like to take the 25% tax free lump sum.
First question is can I take lump sums from both the NRA 60 and 65 pots? if so do I have to apply for both separately?
On a separate topic it looks like I'll be giving up employment very soon to care for my father as my mother is no longer capable of caring for him. How would this effect taking the 25% lump sum and applying for full pension for becoming a carer?
I would be grateful for any advice on these topics before I make any decisions.
Thanks in advance Scott.

[heapsy]

If you take the lump sum, you also have to take the pension. The two aren't separate. Taking any pension early means a reduction in both the pension AND the lump sum. 5% per year for every year it is taken before NRA. The answers are already on the forum. Read them. Think carefully before you go ahead. It could turn out to be a costly mistake.

[RobertT]

Hi
I'm a deferred member (June 1987 - January 2015).
I'm 55 in July and would like to take the 25% tax free lump sum.
First question is can I take lump sums from both the NRA 60 and 65 pots? if so do I have to apply for both separately?
On a separate topic it looks like I'll be giving up employment very soon to care for my father as my mother is no longer capable of caring for him. How would this effect taking the 25% lump sum and applying for full pension for becoming a carer?
I would be grateful for any advice on these topics before I make any decisions.
Thanks in advance Scott.

As has been said already, it's not possible to take just the lump sums, you have to take the pension at the same time and both will be reduced by 5% per year if taken before NRA.

It is possible to apply to get an unreduced pension on ill health grounds, but that ill health must apply to you.

As far as I'm aware there is no ability to get an unreduced carers pension. I can't see any reference to this on the RMSPS website, but the RMPP website says the following on the subject:

Taking your benefits early on compassionate grounds

If you’re aged 55 or over, and are no longer working for your employer, you may be able to take your pension and lump sum early on compassionate grounds. For example, because you have to give up work to be a full-time carer for your spouse, civil partner, or another close relative or partner. If we agree that you can take your benefits on compassionate grounds, some or all​ of your benefits will be reduced. Please contact the Pensions Service Centre for further details. 

I suggest you contact both the RMSPS and RMPP for clarification.

[ihatedogs]

I took my full pension at 55, with a 50%/25% reduction on the nra65/nra60.
Couple of things worth mentioning, I did the maths & using the figures you'll be quoted when you actually apply taking it early obviously comes at a cost, but I worked out the early payment partly cancels out the reduction and I won't be out of pocket until I'm 75.
Secondly, as the RM pension is defined benefit you can, as I have, join the current RM scheme and build up another pension over the next 12 years or so.
As you mention you may be giving up work, the second point may not apply to you but it's useful information for other members.
The actual process is simple, apply by phone approx 3/4 months before you want to take it, they'll send you paperwork with a number of options all with approximate figures. When you decide on the options, send the paperwork back, this is when you are committed and there's no going back. When they run your application, you'll get a solid figure & payment date.
None of the above accounts for your circumstances which may result in payment with no reduction.

[RobertT]

I took my full pension at 55, with a 50%/25% reduction on the nra65/nra60.
Couple of things worth mentioning, I did the maths & using the figures you'll be quoted when you actually apply taking it early obviously comes at a cost, but I worked out the early payment partly cancels out the reduction and I won't be out of pocket until I'm 75.
Secondly, as the RM pension is defined benefit you can, as I have, join the current RM scheme and build up another pension over the next 12 years or so.
As you mention you may be giving up work, the second point may not apply to you but it's useful information for other members.
The actual process is simple, apply by phone approx 3/4 months before you want to take it, they'll send you paperwork with a number of options all with approximate figures. When you decide on the options, send the paperwork back, this is when you are committed and there's no going back. When they run your application, you'll get a solid figure & payment date.
None of the above accounts for your circumstances which may result in payment with no reduction.

He left RM in 2015!

[ihatedogs]

I took my full pension at 55, with a 50%/25% reduction on the nra65/nra60.
Couple of things worth mentioning, I did the maths & using the figures you'll be quoted when you actually apply taking it early obviously comes at a cost, but I worked out the early payment partly cancels out the reduction and I won't be out of pocket until I'm 75.
Secondly, as the RM pension is defined benefit you can, as I have, join the current RM scheme and build up another pension over the next 12 years or so.
As you mention you may be giving up work, the second point may not apply to you but it's useful information for other members.
The actual process is simple, apply by phone approx 3/4 months before you want to take it, they'll send you paperwork with a number of options all with approximate figures. When you decide on the options, send the paperwork back, this is when you are committed and there's no going back. When they run your application, you'll get a solid figure & payment date.
None of the above accounts for your circumstances which may result in payment with no reduction.

He left RM in 2015!

Fair point, missed that bit.
Good info for others though

[balintober]

Thanks for the replies much appreciated.