Lump sum source. NRA 60.

[sack13]

I have my retirement options form in front of me and have tried phoning Pension Service Centre for an answer to this but without success.
Can anyone tell me the pros and cons of sourcing a pension commencement lump sum from the main pension pot , option 2, where AVC's are untouched, or some from pension pot plus some from AVC's, option 2A.
I appreciate I have probably not worded this correctly but would be grateful if anyone can help.
Thanks in anticipation.

[RobertT]

To some degree what you can and can't do will depend on which section you're in!
Section A/B provides a lump sum as standard, while section C doesn't but gives you the option of giving up some pension to get one.
It's unclear from your post which one applies to you.

But the whole point of paying AVC's(Bonusplan & Flexiplan) is to fund the tax free lump sum(also known as the Pension Commencement Lump Sum), so you don't have to give up any or as much pension to get that lump sum.

So as a general rule always use your AVC's to fund that first and then if you want a bigger lump sum(up to 25% of your 'total pot value'), take it from the pension. But that will mean the pension will be less.

See page 12 of your plan guide for an explanation of the 'total pot value': https://www.royalmailpensionplan.co.uk/ ... ts/library" onclick="window.open(this.href);return false;

I hope that helps in some way.

[sack13]

Thanks for your help Robert. Much appreciated.