Cash balance standard income options

[yorkmover123]

Recently posted my options for NR60 to capita today I have received a letter from RMPP for cash balance fund to pick options

Do you receive NR60 benefits from capita sent this off plus another pension benefit cash balance from RMPP

Had AVC some which will funded part of my lump sum and the rest of my AVC that is over the limit will be carried forward to take with my age 65 benefits.

Not sure which option to choose

Cash balance fund is worth £24,550.26

From your age60 benefits. From your cash balance

Option regular income. Tax free cash Tax free cash
1 £909.83 a year + none. + none
1a £909.83 a year + none. £6,065.52

Maximum tax free and reduced income
From your age 60 benefits. From your cash balance

Option regular income. Tax free cash Tax free cash

2 £709.89 a year + £4,732.59 + none

Any guidance would be great 👍

[NorthernBoy]

From what I can see you are giving up £200 annual pension for a lump sum of £4.7k between 2 of the options. Assuming you are paying 20% tax on your £200 then it will take you 29 years to get £4700 back.

The above ignores any uplift that you will get on your £200 pension so the payback will actually be less, but it gives you an idea.

Ask your self do you want an extra £13 a month (or £16 a month if not taxable) or £4.7k now.

Personally I would take the £4.7k, but we are all different.

No right or wrong decision here.