new pension rules?

ossyscouse

I currently work in the nhs,at the age of 55 I currently plan to retire,roughly 5 years from now.i also have a additional voluntary pension with the RNPFN,now run by LV which I can take at the age of 60,10 years from now,would I be able to take the whole value in a lump sum under these new rules please

dunstonh

would I be able to take the whole value in a lump sum under these new rules please

No. You can be thankful that defined benefit schemes are not included in these changes.

ossyscouse

I should have clearly stated taking the whole fund value from the AVC pension only,is that allowed.

Linton

I think you will need to ask the scheme administrators as to whether the AVC can be closed or transferred independently of the main DB pension. It would be better if you could take the DB scheme Tax Free Lump Sum from the AVC, however that wouldnt give you the cash for early retirement.

If the AVC pot is more than £10K everything would also depend on whether the proposals for April 2015 are actually implemented. The government are still considering what if any changes to make to DB pensions so you may have to wait until things are clearer if the AVC is considered to be linked to the DB pension.

greenglide

ossyscouse wrote: »

I should have clearly stated taking the whole fund value from the AVC pension only,is that allowed.

That depends on the rules of the pension scheme. Have you not checked the rule book or asked the administrators?

atush

The nre rules have not clearly stated (that I have seen) that AVcs would become free of their current restrictions. So you may have to wait to see. If they will not live the restrictions on AVCs, then you may want to save elsewhere going forwards.

What I can tell you is, if you want to go early/unreduced, then I would be saving every penny I could into a DC pension instead from which you could take money to live on while waiting for you DB pension. The first 25% TF year one, then up to your PA in years after (still TF).

ossyscouse

I only today received the yearly statement,so hadn't given a thought to it,with regards to the the AVC I would have taken early retirement 5 yrs before it becomes active when i reach 60.