All paid up in time

[Wullie10]

I was thriled to bits as both Sheffield and Darlington ( as I call them ) paid lump sums on my birthday as promised. After reading horror stories on the forum there was always a slight doubt. Not sure what all the fuss was about as it was all quite straight forward. Next year the lifetime limit will be scrapped making the process even easier.
My advice is to get any paper work in ASAP, read the threads on the forum and learn as much as you can. Ring or email both parties if in doubt. Good luck and long happy retirement all posties.

[scoobydo79]

Congratulations. It seems the lifetime allowance form is the one that throws people. It asks for an amount and a percentage and a before or after date and no one has a clue what there on about .

[Wullie10]

Congratulations. It seems the lifetime allowance form is the one that throws people. It asks for an amount and a percentage and a before or after date and no one has a clue what there on about .

Absolutely. After the LA is abolished, surely it will be just a case of , which of two options you want to take.

[NorthernBoy]

When you get a quote for your pension values and they show you the various options, do they check how much you have in avc fund when working these figures out.

Say you have 20k in avcs, do the pension options they show you of maximum / minimum lump sum combinations, reflect the fact that you will be taking the 20k. If they don’t then surely the pension quotes are inaccurate.

Anyone know how getting a quote works re the above situation

Thanks

[Wullie10]

The quote nearer retirement which you chose includes the AVC and is included in the options. I'm probably £1000 + short of what it should be , but they say it'll all be sorted and paid out within 6 to 12 weeks.

[Wullie10]

The first quote about 3 months before retirement date does not include the AVC .
The quote nearer retirement which you chose includes the AVC and is included in the options. I'm probably £1000 + short of what it should be , but they say it'll all be sorted and paid out within 6 to 12 weeks
The difference between my first quote ( non avc ) and the final figure was about £4,000 lump sum more £1,000 pa . Extra. There are limits , so it's not jut a case of adding £ 20,000 on to the first quote.

[RobertT]

Next year the lifetime limit will be scrapped making the process even easier.

It might not be next year afterall:

https://www.actuarialpost.co.uk/article ... -22649.htm

The Spring Budget saw the announcement that the Lifetime Allowance (LTA) was to be abolished. The first transitional stage has already been achieved with the temporary replacement of the 55% and 25% tax charges on LTA excess.

However, the second stage completes the abolition by removing the LTA from the statute book which has run into technical difficulties and complexities which means it may have to be extended by a year to April 2025.

David Brooks commented: “Scrapping the LTA was a strategic move made by Mr Hunt to encourage older workers – especially doctors – to remain in the workforce and ease the UK’s health crisis while simplifying the tax system. Financial planning requires policy consistency. The worry for workers is that pushing the abolition of the LTA back to 2025 puts it at risk of being reversed should Labour form the next government given it has committed to re-instating the tax creating uncertainty. It may become an ideological decision to push it through to ensure it is harder to reinstate.”