Payment of remaining cash balance

[max49]

I turned 65 this week and should have been due my tax free lump sums, unfortunately, although the pension people have had my paperwork for over 3 months I have not received any money. I have been in contact with them and all they can tell me is that it is being processed, I did ask if I would be paid the interest that I was loosing but the person said that I would need to put that in an email. My question to any member who has taken their 65 pension is, when is the remainder of the cash balance paid? Many thanks for your help with this enquiry.

[Rob]

I turned 65 at the beginning of August and still haven't received my cash balance lump sum. The monthly pension payments are being paid ok and my supplements are supposedly going to be paid end of this month (with backpay). I have enquired about the cash balance and been told it's being processed and will be paid when final calculations have been done.

[max49]

Thank you, sounds like it could be a bit of a wait for the remainder to be paid

[Steve_claret]

If you take the remaining cash balance after your lump sum has been paid out then at what rate is this taxed and is there any way around paying tax?

[RobertT]

If you take the remaining cash balance after your lump sum has been paid out then at what rate is this taxed and is there any way around paying tax?

Any income between £12,571 and £50,270 will be taxed at 20%. Any income higher than that, and it's 40%.
Tax free amounts don't count!

Excess DBCBS cash is paid out as a Uncrystalised Pension Funds Lump Sum, which means the first 25% of that is also tax free.

I believe it is possible to transfer out your whole DBCBS pot to a personal pension, to then drawdown or buy an annuity. Which maybe more tax efficient for some, but will depend on individual circumstances and income.

I'm not sure whether you can transfer out the excess amount, once you've used the DBCBS to fund the tax free lump sum with NRA65 benefits. Or whether you have to take it all with NRA65.
You'll have to clarify that with the PSC.

[Steve_claret]

Thanks Robert. I didn't realise you can get 25% of the remaining balance tax free as well. Interesting to know. Every little helps.