lump sum

manuman

I have a transfer value from a final salary pension of £137000 was wondering how much I would be able to take out as a lump sum in 7 years time when i reach 55 i am not working at the minute.I have a projected pension of £14000 when i hit 65

CannySaver_2

Hi

You have two options:

1. Take a lump sum and income from the scheme itself

2. Transfer the value, also known as the Cash Equivalent Transfer Value (CETV) to another scheme and take the lump sum, and income if needed, at 55

It is hardly ever best advice to take option 2, taking benefits from the existing scheme is nearly always the best thing to do.

You should write to or call your existing scheme, and ask them for the following:

1. A projection of benefits to age 55

2. A projection of benefits to the scheme retirement age

This will tell you the tax free lump sum and income at both those ages, it will also tell you what you are giving up by taking benefits early.

Hope this helps.

The Canny Saver

manuman

I have a projected pension of £14000 at 65

atush

But you need to knwo your income and lump sum if taking the pensionat 55? So you have to ask them.

At only 48 hopefully you will find work soon, as taking a FS and lump sum from a FS pension at 55 shouldn't be the first thing you look to do? If you do take the pension then, Iw ould strongly suggest you maximise the income by taking no lump sum.

manuman

Well I loose 4% per year from 65 which is 40% so I would get £8400 at 55