Another question on taking RM pension @ 55

Post by **savo** » 07 Jul 2013, 07:57

Definitely planning to take my deferred RM NRA60 pension at age 55...

Coming up to 53 now, so probably too early to start talking to the Pensions Dept about it yet...

Anyone who has done this, how much time before 55th birthday did you need to get it all organised ?

Ta

Post by **savo** » 08 Jul 2013, 07:43

cheers bud, obviously you get a detailed breakdown of maximum lump sum, and actual monthly pension payment before you commit to anything ?

2old4this · Post by **2old4this** » 09 Jul 2013, 12:46

savo wrote:cheers bud, obviously you get a detailed breakdown of maximum lump sum, and actual monthly pension payment before you commit to anything ?

You'll get three options,

1. monthly pension and lump sum,

2. Lose some of you monthly pension and increase your lump sum,

3. sell your lump sum and increase your monthly pension,

Lump sum over £30,000 is taxed at 40%.

and you'll lose 5% for each year your under 60.

I looked into taking mine, decided not to though.

Post by **cloherty1976** » 09 Jul 2013, 12:53

I thought your lump sum is tax free on your pension.. On redundancy you get taxed

2old4this · Post by **2old4this** » 09 Jul 2013, 13:47

cloherty1976 wrote:I thought your lump sum is tax free on your pension.. On redundancy you get taxed

Tax free up to £30,000. even on your pension lump sum. after that you'll be paying tax at 40%.

Post by **RobertT** » 09 Jul 2013, 14:32

2old4this wrote:
cloherty1976 wrote:I thought your lump sum is tax free on your pension.. On redundancy you get taxed
Tax free up to £30,000. even on your pension lump sum. after that you'll be paying tax at 40%.

Only redunancy lump sums are taxed (above £30k), pension tax free lump sums aren't taxed.

Post by **cloherty1976** » 09 Jul 2013, 14:35

Agree with you robert

2old4this · Post by **2old4this** » 09 Jul 2013, 16:17

RobertT wrote:
2old4this wrote:
cloherty1976 wrote:I thought your lump sum is tax free on your pension.. On redundancy you get taxed
Tax free up to £30,000. even on your pension lump sum. after that you'll be paying tax at 40%.
Only redunancy lump sums are taxed (above £30k), pension tax free lump sums aren't taxed.

I'd check on that. one of the blokes in our office took the increased lump sum, £53,000 but he had to pay tax on it over £30,000,

Not being funny but theres more miss information on here then there is in the average office floor.

Post by **cloherty1976** » 09 Jul 2013, 16:20

You can take lump sums on pensions upto 25% of total tax free and it has been like that for years.

2old4this · Post by **2old4this** » 09 Jul 2013, 16:31

cloherty1976 wrote:You can take lump sums on pensions upto 25% of total tax free and it has been like that for years.

If I'm wrong then I'm wrong, but I'd advise anyone thinking of taking their pension early to contact the pension people directly and talk with them. There's so much miss information on here. I checked because someone here posted that they wanted to change to rules regarding our pensions pre 2008. Its with the best intension's I'm sure, but advice is given out here without posters knowing the full facts.

I got my figures through and you'll take a big big hit taking it out early.

Post by **cloherty1976** » 09 Jul 2013, 16:35

I agree always ring Royal Mail pensions and get it in writing but the lump sum is tax free. You can also check government website on pensions which says pension upto 25% is tax free

2old4this · Post by **2old4this** » 09 Jul 2013, 16:46

cloherty1976 wrote:I agree always ring Royal Mail pensions and get it in writing but the lump sum is tax free. You can also check government website on pensions which says pension upto 25% is tax free

I'm not sure if it's because I looked into taking my pension early but I had a letter from DWP last week, it was just reminding me that I couldn't claim my state pension now until I'm 66. I've 36 years on deliveries now.... If I did have to work till 66 I'd be lucky to draw my pension for more then couple of weeks.

Post by **TrueBlueTerrier** » 09 Jul 2013, 16:52

2old4this wrote:Not being funny but theres more miss information on here then there is in the average office floor.

Which is why its a good idea to provide links to back up posted information.

2old4this · Post by **2old4this** » 10 Jul 2013, 14:34

TrueBlueTerrier wrote:
2old4this wrote:Not being funny but theres more miss information on here then there is in the average office floor.

Which is why its a good idea to provide links to back up posted information.[/quote

So has anyone got a link showing you don't pay tax on your lump sum then.

2old4this · Post by **2old4this** » 10 Jul 2013, 14:40

Everything I'm seeing is saying you can take 25% of your pension as a tax free lump sum.

Anyone got a link saying our lump sum is all tax free even after £30,000

ROYALMAILCHAT

Another question on taking RM pension @ 55

Another question on taking RM pension @ 55

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