Stephens Post...Best Option 2A

[onejontwo]

As you pointed out that RM pension don't include all monies in their quote until you decide to go ahead with the quote, many people like me, considered their actual retirement date on the strength of that quote. So on reflection we're actually due MORE which is a good thing but surely some people will delay their retirement based on the inconclusive figures thinking that they'll get less than they are actually due? RM pension sure is confusing.

[stephen500]

As you pointed out that RM pension don't include all monies in their quote until you decide to go ahead with the quote, many people like me, considered their actual retirement date on the strength of that quote. So on reflection we're actually due MORE which is a good thing but surely some people will delay their retirement based on the inconclusive figures thinking that they'll get less than they are actually due? RM pension sure is confusing.

And once reconcilation takes place, up to 12 weeks after your intial lump sum, you may find like mine that your cash balance fund goes up. mine did by £1450 in my hand after tax on top of the £6800 I was expecting.

[Hawkey99]

Just revisiting Stephens legendary post.....

I noticed that with his RMPP NRA 65 (Green paper) his total DBCBS is £13776 but the lump sum he was offered was £5911 which is much more than 25% tax free.

Just wondered why that was and would it be the same principle for everybody...

Thanks as always....

[RobertT]

I haven't looked back at Stephens500's 'road to retirement' thread, but my memory of it is that he was in section B and therefore had a lump sum as standard.

At a guess I would say the £5,911 you mention was the amount of his DBCBS which was added to his standard lump sum to get the maximum 25% tax free amount.
The remainder being paid out as a UFPLS.

I seem to remember you're in section C and therefore your benefits and your choices, are going to be a little different.