LUMP SUM AT 55 ?

shaun1965 · Post by **shaun1965** » 04 Mar 2018, 19:55

Hope someone can help.!!
Part of my divorce agreement says my ex wife is entitled to 37.5% of my pension when i turn 55 in 3 years time.
Will i still be able to draw a lump sum under either of the proposed pension schemes to pay her off,and which one
would you recommend ? I have 25 years service.

NWpostie · Post by **NWpostie** » 04 Mar 2018, 22:31

Does she not have her own pension ? You could claim some of hers as well ?

RobertT might be your man for this sort of query.

paulp · Post by **paulp** » 04 Mar 2018, 22:56

I would pay it now if u can otherwise you will be paying 3 years pension to an EX wife

Post by **RobertT** » 05 Mar 2018, 16:17

I don’t know much about what happens when you divorce I’m afraid, having never been married. But as I understand it, your pension will have a value of roughly 20x your pension income, so for example, if you’ve currently accrued a pension of £5k per year, it will have a value of £100k and your wife will be entitled to £37.5k. That will reduce your pension down to around £3,125.

If you can pay her off in another way and keep you pension, then try and do that instead.

You might find this useful.

shaun1965 · Post by **shaun1965** » 05 Mar 2018, 20:28

Thanks Robert T for your reply .
All i really need to know if both or either of the RMDCP or the DBCBS will pay a lump sum at 55.

NWpostie · Post by **NWpostie** » 05 Mar 2018, 22:49

Thats why Im not getting married, its the bloke that gets shafted.

Post by **RobertT** » 06 Mar 2018, 16:38

shaun1965 wrote:Thanks Robert T for your reply .
All i really need to know if both or either of the RMDCP or the DBCBS will pay a lump sum at 55.

The DBCBS provides a lump sum but has to be taken at the same time as your NRA60 or NRA65, and will be reduced if taken at 55.
The RMDCP is completely separate and can be accessed in its entirety any time after 55, but only 25% is guaranteed to be tax free.

Post by **TrueBlueTerrier** » 06 Mar 2018, 17:05

NWpostie wrote:Thats why Im not getting married, its the bloke that gets shafted.

My nephew will be surprised to hear that, he gets support from his ex for the child he has sole custody of.

mark.cup · Post by **mark.cup** » 06 Mar 2018, 19:48

TrueBlueTerrier wrote:
NWpostie wrote:Thats why Im not getting married, its the bloke that gets shafted.
My nephew will be surprised to hear that, he gets support from his ex for the child he has sole custody of.

To be fare even in today's modern world of equal rights this happens 99 times out of a hundred and I'm talking from experience and have been a single parent for 10 years!

shaun1965 · Post by **shaun1965** » 07 Mar 2018, 09:52

RobertT wrote:
shaun1965 wrote:Thanks Robert T for your reply .
All i really need to know if both or either of the RMDCP or the DBCBS will pay a lump sum at 55.
The DBCBS provides a lump sum but has to be taken at the same time as your NRA60 or NRA65, and will be reduced if taken at 55.
The RMDCP is completely separate and can be accessed in its entirety any time after 55, but only 25% is guaranteed to be tax free.

Many thanks Robert T ,thats helped me .I can now crunch some figures.

tmac · Post by **tmac** » 20 Mar 2018, 15:20

If I was to take my pension at 55 . Obviously there is percentage reduction.Is the lump sum tax free.

Post by **RobertT** » 20 Mar 2018, 19:00

tmac wrote:If I was to take my pension at 55 . Obviously there is percentage reduction.Is the lump sum tax free.

Yes, it's tax free.