NRA 65 and cash balance

[tpost]

Hi,
I’ve just received an estimate to take my NRA benefits early. The cash balance part of the scheme says I could take it tax free subject to maximum limits set by HMRC. I’ve had a look through the forums and have to admit I found it quite confusing. Here are the figures I have

Pension of £1813 a year
Or
Pension of £ 1419 a year and tax free lump sum of £9461

The cash balance value is £22718

Also I have AVCs valued at around £22k

I would be grateful if someone could give me an idea what the maximum lump sum I could get after any tax. It seems if you want a more detailed quote you have to commit to taking the pension. I have already taken my NRA60 pension 3 years ago.

[vmaxv4]

Hi,
I’ve just received an estimate to take my NRA benefits early. The cash balance part of the scheme says I could take it tax free subject to maximum limits set by HMRC. I’ve had a look through the forums and have to admit I found it quite confusing. Here are the figures I have

Pension of £1813 a year
Or
Pension of £ 1419 a year and tax free lump sum of £9461

The cash balance value is £22718

Also I have AVCs valued at around £22k

I would be grateful if someone could give me an idea what the maximum lump sum I could get after any tax. It seems if you want a more detailed quote you have to commit to taking the pension. I have already taken my NRA60 pension 3 years ago.

The cash balance figures you have been given are provided from last year’s illustration. So you will have to factor in this year’s 2023/2024 increase also.

[vmaxv4]

Watch this
https://youtu.be/OV87aZlzsMc?si=1qe20lhgI8AaUlQW
& this
https://youtu.be/l9EhWstGZIA?si=MhJszvfQu5uLT1zn
Try this
https://www.which.co.uk/money/tax/incom ... WP80A7AUNe
Read this
https://www.thp.co.uk/emergency-tax-on- ... thdrawals/
Hope this helps.
Been sourcing tax implications on the amount of cash balance we’ve all accumulated.
Ps. I don’t have any Avc’s

[vmaxv4]

If you’re considering Annuity/Drawdown etc.
Try this
https://extranet.secure.scottishwidows. ... calculator

[freespeech]

Hi,
I’ve just received an estimate to take my NRA benefits early. The cash balance part of the scheme says I could take it tax free subject to maximum limits set by HMRC. I’ve had a look through the forums and have to admit I found it quite confusing. Here are the figures I have

Pension of £1813 a year
Or
Pension of £ 1419 a year and tax free lump sum of £9461

The cash balance value is £22718

Also I have AVCs valued at around £22k

I would be grateful if someone could give me an idea what the maximum lump sum I could get after any tax. It seems if you want a more detailed quote you have to commit to taking the pension. I have already taken my NRA60 pension 3 years ago.

Are you sure that is all the cash balance? We have been paying in for over 5 years now so with the RM contribution it is now over 100% of pensionable pay. I assume you earn more than £4.5k per year?

[Jefferson Starfish]

£22.7k is cash balance of which £9.4k is tax free. With the rest and the AVC's being taxable.

[tpost]

Looks like the cash balance valuation they have quoted is for April 23. I guess it’s about £28k now

[freespeech]

Hi,
I’ve just received an estimate to take my NRA benefits early. The cash balance part of the scheme says I could take it tax free subject to maximum limits set by HMRC. I’ve had a look through the forums and have to admit I found it quite confusing. Here are the figures I have

Pension of £1813 a year
Or
Pension of £ 1419 a year and tax free lump sum of £9461

The cash balance value is £22718

Also I have AVCs valued at around £22k

I would be grateful if someone could give me an idea what the maximum lump sum I could get after any tax. It seems if you want a more detailed quote you have to commit to taking the pension. I have already taken my NRA60 pension 3 years ago.

Are you sure that is all the cash balance? We have been paying in for over 5 years now so with the RM contribution it is now over 100% of pensionable pay. I assume you earn more than £22 per year?

[tpost]

Hi,
I’ve just received an estimate to take my NRA benefits early. The cash balance part of the scheme says I could take it tax free subject to maximum limits set by HMRC. I’ve had a look through the forums and have to admit I found it quite confusing. Here are the figures I have

Pension of £1813 a year
Or
Pension of £ 1419 a year and tax free lump sum of £9461

The cash balance value is £22718

Also I have AVCs valued at around £22k

I would be grateful if someone could give me an idea what the maximum lump sum I could get after any tax. It seems if you want a more detailed quote you have to commit to taking the pension. I have already taken my NRA60 pension 3 years ago.

Are you sure that is all the cash balance? We have been paying in for over 5 years now so with the RM contribution it is now over 100% of pensionable pay. I assume you earn more than £22 per year?

The cash balance quoted is for April 23, it’s probably about £28k now

[freespeech]

Hi,
I’ve just received an estimate to take my NRA benefits early. The cash balance part of the scheme says I could take it tax free subject to maximum limits set by HMRC. I’ve had a look through the forums and have to admit I found it quite confusing. Here are the figures I have

Pension of £1813 a year
Or
Pension of £ 1419 a year and tax free lump sum of £9461

The cash balance value is £22718

Also I have AVCs valued at around £22k

I would be grateful if someone could give me an idea what the maximum lump sum I could get after any tax. It seems if you want a more detailed quote you have to commit to taking the pension. I have already taken my NRA60 pension 3 years ago.

Are you sure that is all the cash balance? We have been paying in for over 5 years now so with the RM contribution it is now over 100% of pensionable pay. I assume you earn more than £22 per year?

The cash balance quoted is for April 23, it’s probably about £28k now

Agreed, but the figure for 2023 would have been at 5 years so effectively a years pay. £22k seems low?

[max49]

Your AVC can be used to fund the lump sum from the Capita part of the 65 benefit, the starting figure for this part of my 65 benefit was £716.39 pension with a tax free lump sum of £2,149.16. Using the AVC I have a pension of £836.19 and the AVC gave me tax free lump sum of£5,574.60. The rest of my AVC is still invested until I decide to drawdown from it, then I will move it to another provider as this option is not available with Scottish Widows.

The starting figures for my 65 benefits from RM are a pension of £2099.91 and tax free lump sum of £6,299.72. Using the cash balance I received a pension of £2,377.67 and the cash balance gave me a lump sum of £15,851.12 leaving a remaining £10,234.05 of which 25% was tax free.

I was a section B pension member, and I know the section C benefits are not quite as good, but if these members stop working for RM then there is a supplement paid with their pension until they reach state pension age.