age 55 taking my pension now

[happymackem]

i have asked for and recieved my estimate of section A actuarially reduced pension benifits and am thinking of taking my NRA 6O benifits while leaving my NRA 65 benifits to grow,(or should i take both 60 and 65 now)
but i have a couple of questions
would I pay tax on either the lump sum or the annual pension and would the annual pension be paid now or would I have to wait till I am either 60 or 65?
how would this affect any possible EVR offer.
cheers
.

[RobertT]

am thinking of taking my NRA 6O benifits while leaving my NRA 65 benifits to grow,(or should i take both 60 and 65 now)

So far we have only built up less than 6 months NRA 65 benefits, so I doubt you actually have much that will grow, but you will get more at 65!

would I pay tax on either the lump sum or the annual pension

You don't pay tax on a pension lump sum. Your annual pension is subject to tax just as your earning are now, so the first £6,500(aprox) is tax free and everything after that is taxed at 20% assuming your a standard rate tax payer. Although I believe the government are planning on increasing this by £1k in april and to £10k by the end of their 5 year term.

and would the annual pension be paid now or would I have to wait till I am either 60 or 65?

You can take your pension anytime after 55 assuming RM let you and you're prepared to take the acturial reduction.

how would this affect any possible EVR offer.

I'm no expert on EVR but the two should be totally separate, but bare in mind if your EVR payout is more than £30k you have to pay tax on the excess.

[happymackem]

thanks a lot robert thats cleared a lot up for me

[maisymoo04]

robert t you our the man am 37 now got 20 years in can i leave mate

[Judgee]

robert t you our the man am 37 now got 20 years in can i leave mate

I got 20 years in hell to come to and would gladly retire tomorrow given the chance!

[maisymoo04]

ad go mate just havnt got the bottle to am a sh@@ house pal

[baldrick]

how would this affect any possible EVR offer..

Don't take this as gospel - it's just my understanding of how it works and I'm not certain about how VR/EVR works now.
But as I understand it, if you are still in the pension scheme (the NRA 65 bit) you would not get VR, only EVR based on your
remaining pensionable years, enhanced by 37.5%, plus 26 weeks redundancy compensation.
If you take all your pension (NRA 60 + NRA 65), and come out of the RM pension scheme completely you would get VR of
between 26 and 104 weeks, depending on your age and length of service at time of taking VR.
But you should confirm this with the Pension Service Centre, before making any decision.

[baldrick]

i have asked for and recieved my estimate of section A actuarially reduced pension benifits and am thinking of taking my NRA 6O benifits while leaving my NRA 65 benifits to grow,(or should i take both 60 and 65 now).

Obviously you will make your decision based on your personal circumstances,
but aren't you going to have your pension reduced by 50% if you take it at 55?
Sounds like a big hit to me.

[stodgy88]

correct me if im wrong ,but origonal pension -not DC - is reduced by 5% PA -so 60 down to 55 = 5 years x 5% = reduction of 25%-cheers

[RobertT]

aren't you going to have your pension reduced by 50% if you take it at 55?
Sounds like a big hit to me.

Taking your NRA60 at 55 would see a 25% reduction, but taking your NRA65 at 55 would see a 50% hit.