Cash balance scheme

Post by **NorthernBoy** » 06 May 2020, 11:30

[quote="TheStrangler"]Thanks to all above who've replied and thanks Stephen for the effort of including your workings out.
My plan is similar to yours Stephen in so much as I want to use any lump sum divided up into number of years (9) till state pension to top up my monthly rm pension.
The max lump sum is a no brainer for me based on the above rather than breaking even with the max pension in 21 years or so.
State pension and rm pension should suffice from that point.

I am planning on doing the same - will take NRA60 at 60 and a reduced nra65 (not a large amount) and then divide my AVC total by 7 years.

This monthly AVC total will be added to my main pensions and should be enough for a decent monthly income. Once the state pension kicks in at 67 this will replace the avc amount and maintain a steady monthly income.

Taking the max lump sum is better for me as would rather have the money to spend whilst in good health rather then wait years to break even via a higher pension.

Post by **stephen500** » 06 May 2020, 16:31

renrag40 wrote:No Stephen. He had 20 years service at the time and was definitely in Section C. My point was that the interim fund was only in operation for a duration of just over 10 months at the time that he took his pension aged 55. His cash pot was over £3500 which would have been pretty much spot on for his and RMs contributions for just over 10 months. So it appears that he did not have his cash pot reduced. I hope this happens for you ...... and me if I can hold out for another 4 years.......

Well let's hope so. Reduction rates for early payment for DBCBS are unknown.
If there is no reduction, I will be £4091 better off minus tax of £818 leaving me with an extra £3273.

Post by **stephen500** » 06 May 2020, 16:35

NorthernBoy wrote:
TheStrangler wrote:Thanks to all above who've replied and thanks Stephen for the effort of including your workings out.
My plan is similar to yours Stephen in so much as I want to use any lump sum divided up into number of years (9) till state pension to top up my monthly rm pension.
The max lump sum is a no brainer for me based on the above rather than breaking even with the max pension in 21 years or so.
State pension and rm pension should suffice from that point.

I am planning on doing the same - will take NRA60 at 60 and a reduced nra65 (not a large amount) and then divide my AVC total by 7 years.

This monthly AVC total will be added to my main pensions and should be enough for a decent monthly income. Once the state pension kicks in at 67 this will replace the avc amount and maintain a steady monthly income.

Taking the max lump sum is better for me as would rather have the money to spend whilst in good health rather then wait years to break even via a higher pension.

I am dividing up some of my lump sum to take my £11,200 pension to a yearly income of £20,000. Good news is I will pay no yearly tax, till I take my state pension. Note : Your avc's. Those with avcs appear to have their pension delayed by a couple of months to allow for disinvestment of avc. So if you want it, apply a little earlier or talk to them about it.

renrag40 · Post by **renrag40** » 06 May 2020, 19:22

stephen500 wrote:
renrag40 wrote:No Stephen. He had 20 years service at the time and was definitely in Section C. My point was that the interim fund was only in operation for a duration of just over 10 months at the time that he took his pension aged 55. His cash pot was over £3500 which would have been pretty much spot on for his and RMs contributions for just over 10 months. So it appears that he did not have his cash pot reduced. I hope this happens for you ...... and me if I can hold out for another 4 years.......
Well let's hope so. Reduction rates for early payment for DBCBS are unknown.
If there is no reduction, I will be £4091 better off minus tax of £818 leaving me with an extra £3273.

. My thoughts as well Stephie boy!!

Post by **freespeech** » 06 May 2020, 19:55

[/quote]
I am dividing up some of my lump sum to take my £11,200 pension to a yearly income of £20,000. Good news is I will pay no yearly tax, till I take my state pension. Note : Your avc's. Those with avcs appear to have their pension delayed by a couple of months to allow for disinvestment of avc. So if you want it, apply a little earlier or talk to them about it.[/quote]

With this years personal allowance at £12500 how would you not pay any tax on £20K? Are you saying you would supplement £11,200 (not tax payable) with £8,800 from your previous paid lump sum?

Post by **stephen500** » 06 May 2020, 22:30

freespeech wrote:

I am dividing up some of my lump sum to take my £11,200 pension to a yearly income of £20,000. Good news is I will pay no yearly tax, till I take my state pension. Note : Your avc's. Those with avcs appear to have their pension delayed by a couple of months to allow for disinvestment of avc. So if you want it, apply a little earlier or talk to them about it.[/quote]

With this years personal allowance at £12500 how would you not pay any tax on £20K? Are you saying you would supplement £11,200 (not tax payable) with £8,800 from your previous paid lump sum?[/quote]
Yes, that is the plan. I won't pay tax till my state pension kicks in