rule of 85

bigmex

I have just been given figures to retire on my 55th birthday on a salary rule of 85 scheme it quiotes me a retirment pension 0f £9628 after a lump sum (max) 64 000 -- What will I get at then end of the month - is the pension taxable etc etc ????

CLAPTON

yes, your pension is taxed just like income although you don't pay any NI on pension income
so the first 6475 is tax free the rest is taxed at 20%
assuming no other income