Anyone converted Pension to lump sum lately?

[NorthernBoy]

As per the title has anyone done this recently at retirement / or had a quote, and if so what was the conversion rate?

Generally it’s usually around 20:1, eg you give up £100 pension to get £2000 lump sum

As interest rates are rising just wondering if this is effecting the conversion rate offered on our pensions. My plan is take the maximum 25% but this will depend on the rate, hence my question.

Regards.

[chrisrct]

Just received my age 60 paperwork, due november.
£8954 without lump sum
£6850 with £45,668 lump sum
Works out about 21.7

[citypostie]

Just received my age 60 paperwork, due november.
£8954 without lump sum
£6850 with £45,668 lump sum
Works out about 21.7

How many years have you done?
I'm in a couple of the pensions and not holding out much hope of getting anything like that

[chrisrct]

32years, I will be taking the full lump sum, but I will use my avc ‘s as not to have a reduction of annual pension.

[NorthernBoy]

Just received my age 60 paperwork, due november.
£8954 without lump sum
£6850 with £45,668 lump sum
Works out about 21.7

Thanks for the info share, always good to know what the current conversion rates are.

[freespeech]

Just received my age 60 paperwork, due november.
£8954 without lump sum
£6850 with £45,668 lump sum
Works out about 21.7

Did your paperwork include anything about your AVC's or the cash balance fund?

[chrisrct]

Yes avc amount was included as one of the options ,1a and 2a I think , in the nra 60 forms ,the cash balance figures came with the nra 65 options

[freespeech]

Yes avc amount was included as one of the options ,1a and 2a I think , in the nra 60 forms ,the cash balance figures came with the nra 65 options

Interesting as some of the cash balance should be NRA60.

[RobertT]

Yes avc amount was included as one of the options ,1a and 2a I think , in the nra 60 forms ,the cash balance figures came with the nra 65 options

So does the £45k lump sum you quote, include your AVC's?

Interesting as some of the cash balance should be NRA60.

There is the option to take some Cash Balance with NRA60, but you can leave it all to take with NRA65 if you chose.

[freespeech]

Yes avc amount was included as one of the options ,1a and 2a I think , in the nra 60 forms ,the cash balance figures came with the nra 65 options

So does the £45k lump sum you quote, include your AVC's?

Interesting as some of the cash balance should be NRA60.

There is the option to take some Cash Balance with NRA60, but you can leave it all to take with NRA65 if you chose.

Yes, that's what I thought but the OP has only referenced NRA65. Just wondering whether they were also shown the NRA60 bit of the cash balance.

[chrisrct]

Just checked my estimate forms, nra 60 smaller pension was £127 pa and a cash balance tax free of £870. Which left £17430 to take with nra 65.

[stodgy88]

I took my pension early in my early 50,s obviously losing 5%per year up to age 60,i had been at Royal mail around 25 years, at the time, just wondering if I still have the option of taking all my future payments in a lump sum and if so does, anyone know how this is, worked out, although it's probably not a, good financial decision there would be personal reasons behind my thinking thanks.

[stodgy88]

P S, I turn 65 in around 6 weeks, will this have any effect on my royal mail pension thanks

[RobertT]

I took my pension early in my early 50,s obviously losing 5%per year up to age 60,i had been at Royal mail around 25 years, at the time, just wondering if I still have the option of taking all my future payments in a lump sum and if so does, anyone know how this is, worked out, although it's probably not a, good financial decision there would be personal reasons behind my thinking thanks.

In a word, no.

Once you've taken the decision to draw your pension, that's it, you've got an income for life!

For anyone who hasn't taken all of their NRA60/65 benefits, there is the option to transfer out the RMPP element. Which is benefits accrued from 1st April 2012 onwards.
Any transfer has to be into a defined contribution pension, which you could then drawdown or take it all as cash. Bearing in mind the tax implications!

That option isn't available for benefits accrued before that date, via the RMSPS.

P S, I turn 65 in around 6 weeks, will this have any effect on my royal mail pension thanks

I can't think of any reason why it would.

If you're in section C of the RM pension, reaching state pension age will mean the supplement will no longer be paid.

But it sounds as if you'll get your state pension at 66, and if memory serves me correctly, you were in section B anyway.

[stodgy88]

Thanks Robert, reliable as ever.