lump sum query

Post by **stodgy88** » 22 Oct 2020, 17:49

Hello i am leaving early next year, but owing to covid ,i need to take my lump sum from my pension (the one run by zurich) ,ive contacted them and my shares were sold into the market around a week ago, my lump sum (only around £3000 )will be subject to tax , will it be paid with my wage, or paid into my bank separately thanks

Post by **RobertT** » 22 Oct 2020, 18:44

The RMDCP is now run by Scottish Widows!

So is the £3,000 the total value of your DC pension, or is it 25% of it?

If it's the total value, then 25% will be tax free with the remaining 75% being taxable, meaning about £2,550 in your pocket.

It's got nothing to do with RM payroll and should be paid into your bank account, assuming they have your details, or else presumably a cheque?

As far as I'm aware, SW will deduct the tax before they pay it to you.

Post by **stodgy88** » 22 Oct 2020, 18:47

The total is £3000 ,thanks Robert AGAIN,you never fail to deliver when i need to know anything regarding pensions cheers

Post by **RobertT** » 22 Oct 2020, 19:20

No problem.