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Just reading this thread and all the number crunching jumping through hoops you have to do...
Makes my head hurt thank God i do not have to do this for a few years yet.
Looking forward to it.
Took me ages to work it all out. But basically you will have two options . Bigger lump sum or Bigger annual pension. Once you know which option is best for you there's really no need to be bogged down with numbers.
What id say if you plan to work beyond 65 at RM then be careful of the higher tax bracket.
And also , if you take a reduced annual pension ( especially early ) then thats a lot less for your spouse if you die. As always everyone's situation is different. Ive gone off track again
Just reading this thread and all the number crunching jumping through hoops you have to do...
Makes my head hurt thank God i do not have to do this for a few years yet.
Looking forward to it.
Took me ages to work it all out. But basically you will have two options . Bigger lump sum or Bigger annual pension. Once you know which option is best for you there's really no need to be bogged down with numbers.
What id say if you plan to work beyond 65 at RM then be careful of the higher tax bracket.
And also , if you take a reduced annual pension ( especially early ) then thats a lot less for your spouse if you die. As always everyone's situation is different. Ive gone off track again
I am going to keep it simple - higher annual pension is my priority not bothered by lump sum.
Regarding the cash balance payment. Does the 25% tax free part get paid with the other tax free lump sum on your 65th birthday? And the taxable 75% . Is it true that is paid minus the tax 16 weeks after ?
Last edited by Wullie10 on 25 Jun 2026, 10:26, edited 1 time in total.
Although I haven't taken mine yet I do have the forms and it says :
Taking some tax-free cash from your Cash Balance fund
If you take more of your Age65 benefits as income, there's more room for tax-free cash from your Cash Balance fund. If there's still some left over, you'll need to take it as taxable cash, the first 25% is tax-free and the remaining 75% is taxed. We will pay the taxable cash part around 16 weeks after we pay you and will write to you again.
Just reading this thread and all the number crunching jumping through hoops you have to do...
Makes my head hurt thank God i do not have to do this for a few years yet.
Looking forward to it.
Took me ages to work it all out. But basically you will have two options . Bigger lump sum or Bigger annual pension. Once you know which option is best for you there's really no need to be bogged down with numbers.
What id say if you plan to work beyond 65 at RM then be careful of the higher tax bracket.
And also , if you take a reduced annual pension ( especially early ) then thats a lot less for your spouse if you die. As always everyone's situation is different. Ive gone off track again
I am going to keep it simple - higher annual pension is my priority not bothered by lump sum.
Too, all mine at 55yrs, section B, I took higher lump sum, it would have taken 20yrs to gain back £4grand by taking higher annual pension
Looking at the figures for nra65 do we still have a pension of some sort with capita? Or is that where the figures are from
RMSPS/Capita are responsible for the vast majority of benefits accrued up to 2012, which includes all Age60(up to 2010) and the first two years(2010-2012) of Age65.
RMPP may also pay a small amount of Age60, as some inflationary increases of Age60 benefits fall on them(it's quite complicated).
RMPP pay out the other 6 years(2012-2018) of Age65, plus the Cash Balance(2018-2024).
Looking at the figures for nra65 do we still have a pension of some sort with capita? Or is that where the figures are from
RMSPS/Capita are responsible for the vast majority of benefits accrued up to 2012, which includes all Age60(up to 2010) and the first two years(2010-2012) of Age65.
RMPP may also pay a small amount of Age60, as some inflationary increases of Age60 benefits fall on them(it's quite complicated).
RMPP pay out the other 6 years(2012-2018) of Age65, plus the Cash Balance(2018-2024).
