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Lump Sum

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
monaco
Posts: 8
Joined: 14 Jul 2009, 19:21
Gender: Male

Lump Sum

Post by monaco »

I am taking my age 65 benefits 4 years early
Option 2 of my age 65 flexible pension estimate says Maximum lump sum £10800 plus a small pension. Is the lump sum tax free or is only 25% of it tax free?
I am full time
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Steve_claret
MAIL CENTRES/PROCESSING
Posts: 324
Joined: 17 Dec 2011, 14:53
Gender: Male

Lump Sum

Post by Steve_claret »

monaco wrote:I am taking my age 65 benefits 4 years early
Option 2 of my age 65 flexible pension estimate says Maximum lump sum £10800 plus a small pension. Is the lump sum tax free or is only 25% of it tax free?
I am full time
The max lump sum will be 25% of your total pot as that is the most they can offer and so will all be tax free.
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RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

Lump Sum

Post by RobertT »

Steve_claret wrote:
monaco wrote:I am taking my age 65 benefits 4 years early
Option 2 of my age 65 flexible pension estimate says Maximum lump sum £10800 plus a small pension. Is the lump sum tax free or is only 25% of it tax free?
I am full time
The max lump sum will be 25% of your total pot as that is the most they can offer and so will all be tax free.
Generally that is true, but you will also have to factor in the Cash Balance(DBCBS).
That is only 'attached' to the 2012-2018 RMPP benefits. If it's more than 25% of those, tax may be payable on anything over. But it's not likely to be much.
Links to all RM pension related websites are here
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