Lump sum

[Ginge]

For every pound you give up of your annual pension,how much goes into the lump sum??

[RobertT]

Commutation rates/factors can vary from scheme to scheme and depend on market conditions, mortality rates and age amongst other things. So there isn't a set ratio.

But as a general rule for RM pensions, if you go by £20 in lump sum for each £1 of pension you give up, that should give you a ballpark idea of what to expect.

Bearing in mind, you can't take a tax free lump sum of more than 25% of 'pot value'.

[NorthernBoy]

I am currently taking the maximum lump sum from both nra60 and 65 and the conversion rate i am getting is around 24 for nra 60 and 25 for nra 65

As Rob states the rate will vary and working on a ratio of 20 to 1 is reasonable for planning purposes.

Only when you get your option forms will you be able to work out the exact rate.

[Ginge]

Thanks for reply