serps question 29 April 2014 at 8:11PM edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning 10 replies 926 views

paul2468

In 1993 i contracted out of serps, it is now with the Royal London, today i got a forcast telling me that when i retire in 2022 will be paid £606.50 per year..... can i take this money out now as a lump sum as with it being the old serps i am not sure ?....They have noted that the transfer value today is £10,631.58

dunstonh

can i take this money out now as a lump sum as with it being the old serps i am not sure ?

Not unless you are aged over 60 and you have little or no other pension(s).

paul2468

dunstonh wrote: »

Not unless you are aged over 60 and you have little or no other pension(s).

£600 Per year, not worth it, would be better if i could take it as a lump sum...pity...:mad:

xylophone

£600 Per year, not worth it, would be better if i could take it as a lump sum...pity...

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf
might be worth a read re upcoming pension changes.

dunstonh

paul2468 wrote: »

£600 Per year, not worth it, would be better if i could take it as a lump sum...pity...:mad:

You dont say your age and what other provision you have. These things can be consolidated if you wish and like all savings/investments, they are only as good as what you put in.

paul2468

dunstonh wrote: »

You dont say your age and what other provision you have. These things can be consolidated if you wish and like all savings/investments, they are only as good as what you put in.

I am 57 this year, i thought that the rules had changed and from the age of 55 you could take 25% out of the pot...think i was mis informed.

dunstonh

I am 57 this year, i thought that the rules had changed and from the age of 55 you could take 25% out of the pot...think i was mis informed.

The rules changed in 2006 to allow you to take 25% as a lump sum. However, you would need to do something with the other 75%. What are you plans for that?

paul2468

dunstonh wrote: »

The rules changed in 2006 to allow you to take 25% as a lump sum. However, you would need to do something with the other 75%. What are you plans for that?

Not sure what to do with it...i have been in a pension at work for the last 10 years, could i take 25% out of the £10.000 and put what is left in with my work pension ?

paul2468

dunstonh wrote: »

The rules changed in 2006 to allow you to take 25% as a lump sum. However, you would need to do something with the other 75%. What are you plans for that?

Phoned the pension company and they said yes i can take 25% out but i would be better leaving it till next april when i could take the lot.

paul2468

dunstonh wrote: »

The rules changed in 2006 to allow you to take 25% as a lump sum. However, you would need to do something with the other 75%. What are you plans for that?

Phoned the pension company and they said stated i can take 25% out now
and from next april i could take the lot.Not that they could advise me to do this as it had to be up to me what action i take.

dunstonh

Next april will allow the lot (albeit the 75% being added to your income in that year and you paying tax at the highest applicable rate).

Do you need the money? Can you merge it with your other pension? No point taking it and paying tax on it if it isnt needed.