Another question on taking RM pension @ 55

[RobertT]

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

No offence but I think the words 'tax free' are a rather big hint that tax is not payable on pension commencement lump sums. I think you'll find it very hard to find a link to a £30k limit, because there isn't one.

[2old4this]

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

No offence but I think the words 'tax free' are a rather big hint that tax is not payable on pension commencement lump sums. I think you'll find it very hard to find a link to a £30k limit, because there isn't one.

No offence but I'll take that you can't back up what your posting on here.

I WASN'T THE ONE BY THE WAY THAT POSTED THESE CLAIMS SHOULD BE BACKED UP BY A LINK.

Untill I see this mystical link I'll stick to what I know.

Once again theres more miss information on here then on our floor.

[RobertT]

No offence but I'll take that you can't back up what your posting on here.

Take a look at the RM pension brochures:
http://royalmailpensionplan.co.uk/55/pensions-brochures" onclick="window.open(this.href);return false;

Or the HRMC website:
http://www.hmrc.gov.uk/pensionschemes/t ... sion.htm#3" onclick="window.open(this.href);return false;

No sign of a £30k limit on either site.

I WASN'T THE ONE BY THE WAY THAT POSTED THESE CLAIMS SHOULD BE BACKED UP BY A LINK.

Nor was I.

Untill I see this mystical link I'll stick to what I know.

Can I suggest you put up a link to what you think is correct.

[TrueBlueTerrier]

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

No offence but I think the words 'tax free' are a rather big hint that tax is not payable on pension commencement lump sums. I think you'll find it very hard to find a link to a £30k limit, because there isn't one.

No offence but I'll take that you can't back up what your posting on here.

I WASN'T THE ONE BY THE WAY THAT POSTED THESE CLAIMS SHOULD BE BACKED UP BY A LINK.

Untill I see this mystical link I'll stick to what I know.

Once again there's more miss information on here then on our floor.

If I am understanding this correctly you want people who say there is no limit to find a site that specifically says you get it tax free, beyond £30K. Yet your the one that made the claim

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

I quoted part of your post and asked for people to post links to back up their claims. You kindly tried to find a link about the £30k limit and posted

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

So, you want RobertIT to back up a claim by posting links, but you haven't done that for your own position. In fact, the information you have seen by your own admission, in trying to confirm your position, actually backed up Roberts claim and not yours.

Thank you to Robert for posting the links. I hope you find a link backing your position because at least we could continue this interesting discussion.

[2old4this]

No offence but I'll take that you can't back up what your posting on here.

Take a look at the RM pension brochures:
http://royalmailpensionplan.co.uk/55/pensions-brochures" onclick="window.open(this.href);return false;

Or the HRMC website:
http://www.hmrc.gov.uk/pensionschemes/t ... sion.htm#3" onclick="window.open(this.href);return false;

No sign of a £30k limit on either site.

I WASN'T THE ONE BY THE WAY THAT POSTED THESE CLAIMS SHOULD BE BACKED UP BY A LINK.

Nor was I.

Untill I see this mystical link I'll stick to what I know.

Can I suggest you put up a link to what you think is correct.

This is another thing where the more I search the more confusing it is. When I talked to the bloke thats taken his pension at 55 he'd taken the highest lump sum and he said he paid tax on it.


these links from the same site contradict eachother.

If you have only amassed a small pension fund, you can withdraw the whole amount as a lump sum, but part of it will be taxed

http://www.which.co.uk/money/tax/guides ... -pensions/" onclick="window.open(this.href);return false;

As the lump sum is generally tax-free

http://www.which.co.uk/money/retirement ... y-pension/" onclick="window.open(this.href);return false;

To be honest I always thought that our lump sum was tax free until I looked into taking mine and had a chat with the bloke that had taken his and he told me he paid tax on the lump sum.

[RobertT]

This is another thing where the more I search the more confusing it is. When I talked to the bloke thats taken his pension at 55 he'd taken the highest lump sum and he said he paid tax on it.

I'm only guessing here but could have been that a mistake happened and he paid tax when he shouldn’t have, in which case he should be in line for a refund. Or maybe he was actually made redundant and so became viable for tax? Or maybe he was referring to paying tax on the monthly income rather than the lump sum?

these links from the same site contradict eachother.

If you have only amassed a small pension fund, you can withdraw the whole amount as a lump sum, but part of it will be taxed

http://www.which.co.uk/money/tax/guides ... -pensions/" onclick="window.open(this.href);return false;

As the lump sum is generally tax-free

http://www.which.co.uk/money/retirement ... y-pension/" onclick="window.open(this.href);return false;

The first link relates to pension pots that are only worth £18k or less, which can be taken all as cash with the first 25% being tax free. Although this only applies if that is the only pension you have.
The second relates to pensions of above £18k where you can take 25% tax free and the rest will provide an income.

To be honest I always thought that our lump sum was tax free until I looked into taking mine and had a chat with the bloke that had taken his and he told me he paid tax on the lump sum.

What you always thought is right.

[disheartened]

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

Like you,i plan to take my pension at 55,turned 53 a couple of months ago and have got 34 years service,my fear is the goal posts will be moved and the pension trustees will scrap the retire at 55 option

D

[PMC Network Driver]

Hi just to clarify a few things I am 57 years old I have been in service since October 85 I am a member of the old POSSE pension scheme (A&B) I have just received my NR60 pension estimate which will pay me a TAX FREE lump sum of £41982 max and £6900 per year pension or £23934 and £7922 per year I could if I wanted also take my NR65 which would give me a an extra £4567 on my lump sum.

Our lump sums are definitely tax free but we will pay tax on our monthly pension

PS It takes the pension service's around 6 weeks from the initial inquiry to payout to sort the paperwork

[RobertT]

Like you,i plan to take my pension at 55,turned 53 a couple of months ago and have got 34 years service,my fear is the goal posts will be moved and the pension trustees will scrap the retire at 55 option D

The option to retire at 55 is law, as long as the trustees agree, which in the vast majority of cases they do. So there's not much the trustees can change unless the government change it first.

[RobertT]

Our lump sums are definitely tax free but we will pay tax on our monthly pension

Pension income is taxed in the same way as your wages, so you only pay income tax if your total income is above the personal tax allowance for your age. So if the figures you quoted will be your only income, you won't pay any tax at all.

Under 65 - £9,940
Over 65 - £10,500
Over 75 - £10,660

[heapsy]

Anybody know what the computation factor for the section C pension is? Would be useful. Cheers.

[RobertT]

Anybody know what the computation factor for the section C pension is? Would be useful. Cheers.

I'm pretty sure it's 1:20, so for every £100 of yearly pension you give up, you'll get £2,000 in tax free cash. But the overall limit is still 25%.

[heapsy]

Cheers for that Robert.

[stroller]

I am defo taking my pension at 55 i am 52 years old and have done 31 years and will have done 34 years at 55, god knows what i will get, but everybody i work with are all going to take there pension early when they get to 55, and if i am lucky get EVR at the same time, i should be so lucky.

[arnold cheshire]

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

Like you,i plan to take my pension at 55,turned 53 a couple of months ago and have got 34 years service,my fear is the goal posts will be moved and the pension trustees will scrap the retire at 55 option

D

yes it was 50 not long ago could be changed to any age