Pension from 2018 to 2024

[roadrunner bill]

Please can someone advise me, is the pension from 2018 to 2024 just a lump sum ?
And when can I take it?

I heard 55 and you don't lose anything as it's just a lump sum, I know the new pension start october, so this is a lump sum because it took this amount of time to introduce the new pension starting in October..

Thank you..

[RobertT]

It's a lump sum specifically attached to NRA65 benefits, although some of it can sometimes be taken with NRA60.

See the member guide to benefits on the RMPP website for more info.

You also have the option to transfer it out beforehand to a personal pension for drawdown or annuity.

It was originally only intended to be in operation for 2-3 years, but the legislation for the new scheme has taken so long, it's actually been 6.5 years since it started. As a result many peoples Cash Balance(DBCBS) pots have grown into quite large sums of money, meaning they've become very tax inefficient when taken with NRA65, and difficult to transfer if they're worth over £30k.

[roadrunner bill]

Thank you for your reply,..

If I took my nra 65 at 55, I know I would lose 50% , but would I get the full lump sum..

That this is attached to nra 65...

[RobertT]

The DBCBS wouldn't be reduced if taken at 55 with NRA65, but whenever you take it, you might find the taxman will take a decent chunk.

[rogersh]

In 2018 I remained in the DC scheme - Which I am in the process of claiming a full encashment of my remaining savings - (took several partial encashments),
While a colleague transferred from DC to the CB scheme.

What are the options with that pension?

[RobertT]

In 2018 I remained in the DC scheme - Which I am in the process of claiming a full encashment of my remaining savings - (took several partial encashments),
While a colleague transferred from DC to the CB scheme.

What are the options with that pension?

They'll be in section F, which is similar to a DC scheme.

They can either take the whole pot in one go from the RMPP, with 25% being tax free. Or transfer out to a personal pension for more flexible options.

Again, see the website for more in depth info.

[rogersh]

Thanks Robert .. Have shared the info

[NWpostie]

Wouldn't it be better to take your NRA60 when due then the following next tax year claim your NRA65 so you don't get hit as much by the taxman ?

[wolfman]

I've just had my NRA 60 & NRA 65 quotes from Capita. No mention of my DBCBS lump sum. Is that normal? I thought they would give you an estimate of how much this would be in case I wanted to take my NRA 65?

[RobertT]

I've just had my NRA 60 & NRA 65 quotes from Capita. No mention of my DBCBS lump sum. Is that normal? I thought they would give you an estimate of how much this would be in case I wanted to take my NRA 65?

Perfectly normal!

The DBCBS is attached to your RMPP(2012-2018) pension benefits.

[wolfman]

Thanks for the reply Robert. So when do they inform you of this amount? I assume you have to take this with your NRA65? I thought they would mention that you also have a lump sum to be taken.

[RobertT]

The DBCBS and any AVC's are included in your second lot of quotes after you've sent back the first with your options.

The DBCBS is nothing to do with the RMSPS/Capita, so that should be included in your second quote from RMPP/Sheffield.

[wolfman]

Oh I see, I assumed everything would be in the 1st quotes. Thanks again Robert, really appreciate your knowledge & help

[wolfman]

Is there any way of avoiding paying too much tax on DBCBS? Especially when your NRA 60 is around the 12k mark already, with a few years to go before I take my NRA 65. Would transfering to a drawdown or annuity mean I would pay tax on all of it. Might as well take the lump sum & get 25% tax free. Still could end up with a 8k tax hit on it

[July 1981]

I am currently taking my NRA 65 and have looked into transferring my Cash Balance Fund to a drawdown pension, this has proved nearly impossible and I only found one company willing to provide a transfer for 58K, they were going to charge 4.5k which is significantly less than I will be paying in tax, however the reviews were poor and I couldn’t afford to take any risks, my advice would be prepared to take your time if you go down this route, you still qualify for 25% tax free and only pay tax as you drawdown, a much better option as your able to invest the whole amount before loosing a large slice to the tax man. Good luck