Nra 65

[Sputters]

Hi , I am due to take my nra65 in July next year .
As we stop paying into the pension in October because of the new one starting..would it be worth starting taking out my nra65 in October this year .if i did would i lose much money . Seems to me if I can't put anymore in it I may as well start taking it and get an extra few months pension.

[RobertT]

You stopped building up pension in 2018, you've been building up a lump sum via the DBCBS since then.

Your pension will still be reduced by taking it early – probably by about 3-3.5% if taken in October 2024 instead of July 2025.

It's your choice!

[Sputters]

Thanks Robert. Can I take the lump sum and leave the pension until I'm 65 . I'm thinking the lump sum would earn more in a 5% isa

[Duran]

Thanks Robert. Can I take the lump sum and leave the pension until I'm 65 . I'm thinking the lump sum would earn more in a 5% isa

No Cash Balance as to be taken with NRA65. You can't take one without the other.

[Sputters]

Thanks Duran.

[Wullie10]

But you should be able to take any AVC after it closes October 7th without penalty?

[RobertT]

Thanks Robert. Can I take the lump sum and leave the pension until I'm 65 . I'm thinking the lump sum would earn more in a 5% isa

No Cash Balance as to be taken with NRA65. You can't take one without the other.

But you should be able to take any AVC after it closes October 7th without penalty?

Both the DBCBS and AVC's are pensions which means pension rules apply to them.
In simple terms, you received tax breaks on your contributions and once you've taken the maximum tax free amount, the rest counts as income and is taxed accordingly.

These are your options:

DBCBS:

Take with NRA60/65 to fund tax free cash with any excess being paid as a UFPLS(1st 25% also tax free); or
Transfer the whole amount to a personal pension for drawdown or annuity, when accessed the first 25% is tax free and the rest classed as income and taxed accordingly.

AVC's:

As above, except if you use them to fund the tax free cash with NRA60/65, you also have the option to transfer out the excess to a personal pension afterwards.

AVC's are worth whatever they're worth at the time – no NRA or penalties. You can transfer them at any age, but as they're pensions you won't be able to access the money until the legal minimum age(currently 55).