£29000 extra pension - what to do?

jules9

Hi,

Just received notiication of an extra £29k which will be coming to me re my pension. They are offering it as cash or with the option of increasing annual pension. :j
My total annual pension will be £18811 pa at present without inc this extra money.
What I need advice on is, am i better off taking the cash or how much extra a month/year would i get as annual pension.
At this time the extra cash would be nice but is not essential to me, however with interest rates as they are would i be better getting an extra bit of pension each month.
I am 51 at this time.
Any help appreciated.

jamesd

Your tax situation is one thing to consider so is that 18811 pension available now at retirement age if you stopped working or is it a projection based on continuing to work?

The issue here is the potential loss of the tax free age allowance that happens from £22,900 income, cutting it by £1 for every £2 in taxable income until it's down to the normal £6,475. Income from ISAs doesn't count for this.

If you're unavoidably going to be losing that extra age allowance then it doesn't really matter which way you go if the 29k isn't taxed if you take it now. If you're not using your full ISA allowance including the stocks and shares part then that would be a good use for the money.