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Is pension lump sum tax free?

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Hubby got his anual statement for his pension today and I have a few questions.

Is the lump sum you get when you retire tax free?

On the statement it mentions sytate pension Forcast. Does he get state pension on top of his work pension?

thanks
TOTAL 44 weeks lose. 6st 9.5lb :T

Comments

  • dunstonh
    dunstonh Posts: 119,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Currently the pension commencement lump sum is tax free (hence its old name of tax free cash).

    The basic state pension is paid based on NI contributions and is separate to any works pension. The second state pension may or may not be available depending on whether your husband contracted out (either through the works scheme or a personal pension). However, that will show on his state pension forecast.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • doelani
    doelani Posts: 2,576 Forumite
    Part of the Furniture Combo Breaker
    forcast shows state pension and also additional state pension then a says Total state pension forcast.
    TOTAL 44 weeks lose. 6st 9.5lb :T
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    He should get the three things then:

    1,His tax free cash
    2.His works pension
    3.His 2 state pensions, basic plus additional (aka S2P/SERPS)

    You can check that they've got the state pension amounts right by calling up the Pension Service and applying for a forecast.
    Trying to keep it simple...;)
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