Hi I have had a pension with TSB, now Scottish widows since i started on RM nearly 30 years ago, i haven`t paid anything into it since then and after enquiring this week I find the £800 has grown into a very healthy £15.000.
I have been drawing my RM pension now for nearly 4 years, I`m no expert on these things, but I am thinking i may draw the 15k. would it have any bearing on my RM pension? I am still working.
And I do know the tax implications
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pension freedom
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RobertT
- EX ROYAL MAIL
- Posts: 6645
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: pension freedom
Assuming your pension is defined contribution and with the new pension rules now in force, there are a number of options open to you:
1) Take it all out as cash in one go with the first 25% being tax free.
2) Draw down your £15k over a period of time.
3) Buy an annuity.
4) Keep it invested for it to possibly grow some more.
It would have no bearing on your RM pension at all, but you might find that some pension providers won’t offer all the freedoms that are now available, namely options 1 + 2 above. So transferring to one that does may be the only way to achieve them.
1) Take it all out as cash in one go with the first 25% being tax free.
2) Draw down your £15k over a period of time.
3) Buy an annuity.
4) Keep it invested for it to possibly grow some more.
It would have no bearing on your RM pension at all, but you might find that some pension providers won’t offer all the freedoms that are now available, namely options 1 + 2 above. So transferring to one that does may be the only way to achieve them.
Links to all RM pension related websites are here