Pension Pot

[BeamishStout]

How can you work out the present value (or at the 2016 'squirrel' statement date or at the new illustration sent) of your pension pot under the existing schemes? Having additional AVC's (BonusPlan and Flexiplan), one option for me is use these to fund a tax-free lump sum payment rather than taking a lower pension. Ideally I'd want to have at least enough in my AVCs pot to draw the maximum tax-free amount if I took this route. So the question now arises that, as I am entitled to 25% tax-free of the value of this pension pot, exactly how do you work out the present value of this pension pot and then can you make any kind of approximation to its value at a later date. In my case SRA60 in April 2018. Part of the reason for me asking is to work if there is scope for making additional AVC payments into Flexiplan until 31st March 2018.

Edit: Just seen comments in another thread:

http://www.royalmailchat.co.uk/communit ... 27&t=76631

Just what I needed.

But I have another question. For the purposes of lump-sum maximisation, can I throw in the value of an FSAVC pot into the RM pots I have? It was something I paid into many years ago (for another job I had many moons ago).

[RobertT]

But I have another question. For the purposes of lump-sum maximisation, can I throw in the value of an FSAVC pot into the RM pots I have? It was something I paid into many years ago (for another job I had many moons ago).

As far as I know you can't transfer you FSAVC or any other private pension into the RMPP/AVC's. So they would be treated as a separate entity with just the first 25% being tax free and the rest treated as income.

Although it may be possible to transfer it into the RMDCP/new DC scheme. But as that is also expected to be treated separately from the RMPP, the 25% tax free limit will also apply.