Got my nra 60 pension

[farstrider]

Just received my lump sum and back pension as I took early at 55.now I have to get my avc and I plan to transfer it out and take 25% tax free ever year...my question to anyone is am I doing it right or should I do it a different way.any replies gratefully accepted.

[lordthornber]

You only get the 25% tax free withdrawal once from each scheme. If you have other pensions you can take the 25% tax free from them too. You certainly don't get it every year.

[RobertT]

Just received my lump sum and back pension as I took early at 55.now I have to get my avc and I plan to transfer it out and take 25% tax free ever year...my question to anyone is am I doing it right or should I do it a different way.any replies gratefully accepted.

The most tax efficient way to access your AVC's is usually when you take your NRA60/65 benefits, as they can often be taken completely tax free. Although it will depend on the amounts involved as a percentage of your 'total pot value'.
See page 12 of the members guide to benefits: https://www.royalmailpensionplan.co.uk/ ... ia-library

If you transfer your AVC's out separately from taking your NRA60/65, only the first 25% is guaranteed to be tax free when you subsequently access it, with the remainder being classed as income.
Whether you actually pay tax will depend on your annual earnings – basically any income over £12,500 is taxable.

[farstrider]

Thank you for replying.my avc pot is over 100k.so if I took it with my lump sum I wouldn't.t get that much and be taxed at a huge rate.im planning on going part time and after that I'm leaving the company.maybe a 2 to 3 years timeline.a drawdown seems to be my only route out with the biggest tax free lump.

[farstrider]

Still have my nra 65 to take so possibly when I do ill take max pension and lump made up from my avc..lol my pot is too big.

[freespeech]

Still have my nra 65 to take so possibly when I do ill take max pension and lump made up from my avc..lol my pot is too big.

I don't think it can ever be too big.....

[RobertT]

Thank you for replying.my avc pot is over 100k.so if I took it with my lump sum I wouldn't.t get that much and be taxed at a huge rate.im planning on going part time and after that I'm leaving the company.maybe a 2 to 3 years timeline.a drawdown seems to be my only route out with the biggest tax free lump.

By the sound of it you have a similar sized AVC pot as me, but I plan to take some with my NRA60, all tax free, and the rest with my NRA65 of which some will be taxable.
I've looked at the possibility of transferring instead, but will pay more tax that way.
I'm in section C.

By the sound of it, you're in section B, so you obviously get a lump sum as standard, which means it's a different scenario to me.

[RobertT]

Still have my nra 65 to take so possibly when I do ill take max pension and lump made up from my avc..lol my pot is too big.

I don't think it can ever be too big.....

I tend to agree with this!

There are some on this forum who seem determined to get everything tax free and I'm not saying you shouldn't if you can.
But having a large pot and having to pay a little tax is often better than than having a smaller pot and paying no tax.

Ultimately it's about having enough money to live on, whether that's in work or in retirement.

[k979aaa]

Still have my nra 65 to take so possibly when I do ill take max pension and lump made up from my avc..lol my pot is too big.

I don't think it can ever be too big.....

I tend to agree with this!

There are some on this forum who seem determined to get everything tax free and I'm not saying you shouldn't if you can.
But having a large pot and having to pay a little tax is often better than than having a smaller pot and paying no tax.

Ultimately it's about having enough money to live on, whether that's in work or in retirement.

Some have a very big pot and don't pay any tax.

[RobertT]

Still have my nra 65 to take so possibly when I do ill take max pension and lump made up from my avc..lol my pot is too big.

I don't think it can ever be too big.....

I tend to agree with this!

There are some on this forum who seem determined to get everything tax free and I'm not saying you shouldn't if you can.
But having a large pot and having to pay a little tax is often better than than having a smaller pot and paying no tax.

Ultimately it's about having enough money to live on, whether that's in work or in retirement.

Some have a very big pot and don't pay any tax.

Yes, it will always depend on individual circumstances, when they access their pot and personal choice.

And what some consider a big pot, others might think is small, and vice versa.