Hi, I have applied for my pension NRA60 & NRA65 @ 55 and have been presented with options 1 & 2 from RMSPS and options 1, 1a & 2 from RMPP. I want to take the maximum lump sum possible.
I have carefully looked over the figures and I think that option 2 from RMSPS and option 2 from the RMPP will give me the highest lump sum.
I understand that this option will seem crazy to some but trust me, I have a very good reason for being willing to give up a slightly higher pension for a lump sum now.
Or is option 1A a better choice
Hope someone can advise, as I don't want to make a mistake that can't be reversed
Thanks in advance.
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Pension Options ??
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deadbox
- Posts: 357
- Joined: 27 May 2007, 11:51
Pension Options ??
Last edited by deadbox on 21 Nov 2022, 10:08, edited 1 time in total.
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NorthernBoy
- EX ROYAL MAIL
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Re: Pension Options ??
It will be useful if you can post some actual figures for the various options, for example how much pension do you lose for the amount of lump sum.
Ask yourself will a reduced yearly pension be enough for the lifestyle that you want. Remember to factor in the state pension / partner income / any other income sources.
No right or wrong answer as everyone’s circumstances are different.
Ask yourself will a reduced yearly pension be enough for the lifestyle that you want. Remember to factor in the state pension / partner income / any other income sources.
No right or wrong answer as everyone’s circumstances are different.
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deadbox
- Posts: 357
- Joined: 27 May 2007, 11:51
Re: Pension Options ??
Thank you for your help
Last edited by deadbox on 21 Nov 2022, 10:05, edited 1 time in total.
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NorthernBoy
- EX ROYAL MAIL
- Posts: 384
- Joined: 27 Sep 2010, 21:08
- Gender: Male
Re: Pension Options ??
Personally with those figures, I would be taking the maximum tax free cash I could.
The conversion rate of pension to lump sum is very good in my opinion. I would rather have the cash in my pocket rather than be waiting a lifetime to get the money back via the pension.
As always you have to do what you think is right for you.
Good luck.
The conversion rate of pension to lump sum is very good in my opinion. I would rather have the cash in my pocket rather than be waiting a lifetime to get the money back via the pension.
As always you have to do what you think is right for you.
Good luck.