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Take lump sum or add to pension pot?

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Hi there,

my colleague is about to be made redundant from the rail industry and he has been given the option of adding part of his pay-off to his pension fund. He's 40 years of age and I'm guessing the total gross amount he will get will be circa £80k? - but he wont confirm that to me!

He wants to know should he transfer say 10k to his pension pot as this amount should then be free of tax - right? He has paid into a workplace pension ever since he started working (from age 17ish) so there is no short-fall, - though he has never added to it through any additional contributions.

Grateful for any advice I can pass on, thanks.
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