Age 65 + Cash Balance

[sanafz100]

Hi
I received my options to claim my Age 65 benefits and Cash Balance fund (CBF). Does anyone know at which rate is the 75% of the cash balance taxed? Is it the basic 20%? As when we do the calculation of minus 20% tax option 1A seems to be better off as opposed to option 3A, even though paying more tax:
Option 1A: Age 65 benefits: Pension £1885 a year + £5657 tax-free cash + CBF £6914 tax-free + £14332 taxable
So if tax is 20% then even though paying more tax, lump sum amount after tax is approx £24k
Option 3A: Age 65 benefits: Pension £2140 a year + £0 tax-free cash + CBF £14268 tax-free + £6977 taxable
If tax is 20% then lump sum amount after tax is just under £20k
The difference between the pension after 20% tax is around £200 a year so break even will be 20 years so option 1A would be more favourable as I've retired due to ill health so thinking to take Option 1A.
Have I got the above right or is there something I have missed? Any comments/advice will be appreciated. Thank you.

[RobertT]

Income tax is payable at your marginal rate. Which basically means:

The first £12,570 you earn is tax free.
Income from £12,571 to £50,270 is taxed at 20%.
Between £50,271 and £150,000 is 40%.
Above £150,000 is 45%.

The tax free element of your pension doesn't count towards the above limits. But all other income you have, will count.

Income tax can often be taken at 40% initially when lump sums are taken from pensions. But you'll be able to claim a refund from HMRC if that happens. Which could be a one off payment, or via a change in tax code.

[Jack1960]

Got my nra65 in August
I got the remaining 75 percent cash balance this week this week. I got the first 25 percent tax free and as Robert T says i paid 20 percent on the remainder.

So from a total cash balance of 24000 paid about 850 tax

[Jack1960]

Should have said remaining cash balance not 75 percent