Options to take on my pension, help/advice welcome

jem16

zagfles wrote: »

I would imagine that would be if they didn't take the full 25% tax free lump sum. Otherwise, it'd have to enhance the annuity (or 75% of it would).

so if they don't take the full 25% tax free lump sum and take cashback, then it increases the pot size from which to take the annuity - thus increasing the annuity.

Doesn't really sound like cashback then.

zagfles

jem16 wrote: »

so if they don't take the full 25% tax free lump sum and take cashback, then it increases the pot size from which to take the annuity - thus increasing the annuity.

Doesn't really sound like cashback then.

I suppose not everyone automatically wants the full TFLS, since they might not have income above the personal allowance. Or it might exclude them from benefits if they took it.

But then I suppose they wouldn't want the cashback either!

dunstonh

I suppose not everyone automatically wants the full TFLS, since they might not have income above the personal allowance. Or it might exclude them from benefits if they took it.

With money purchase schemes, there is rarely any reason not to take the tax free cash.