Pension/Cash

castle96

thanks, but now confused.
£18k (no cash for me).... £30k (haven't seen this figure,,,,, yipee)

jamesd

castle96 wrote: »

thanks, but now confused.
£18k (no cash for me).... £30k (haven't seen this figure,,,,, yipee)

It's from this year's budget. See the summary from HMRC about taking small pots as a lump sum. Unlike much of the material you'll find on the web that has been updated to include the budget changes. You'll still find that the old rules are given in more places than the new ones, just because old information stays available for a long time without ever being updated.

Before the Budget there these limits:

1. Two occupational pension small pots could be taken of value up to £2,000 each.
2. And two personal pension small pots could be taken of value up to £2,000 each.
3. And if the remaining value of all pension entitlements except the state pensions was no more than £18,000 they could be taken as lump sums under a triviality rule, all of those under this rule having to be taken within one year.

After the budget the 1 and 2 amount limits were all raised from £2,000 to £10,000 and the case 2 personal pension pot limit was increased from two pots to three. The case 3 triviality limit was increased to £30,000. Section 32 plans tend to be treated as occupational.

xylophone

thanks, but now confused.
£18k (no cash for me).... £30k (haven't seen this figure,,,,, yipee)

The literature from FL in post 11 is updated to cover the 2014 Budget changes but your situation may be complicated by your GMP.

xylophone

And can you clarify the amount of the annual pension that FL must pay you from age 65?


See post 2

castle96

NRD was 2/12 (ie have not taken pension yet)
Fund £22877 (incls GMP of £8055)
Max TFC £7570

Pension of £1521 + spouces pension of £386
or TFC of £7570 + pension of £1126 + spouces pension of £386

GMP at 2/2012 pre 88 £773 post 88 Nil
GMP at 7/2014 pre 88 £773 post 88 Nil

GMP is included in figs above.
Figs incl Terminal Bonus (not split down - would be nice to know what % of the total this is)
Non escalating, Guaranteed 5 yrs

The % of the LTA you will use in respect of the benefits is 2.42% ( ???? what has a figure of £9453305 got to do with anything ??)

There is/will be, no spouce...!
\

xylophone

Does the whole of the annual pension represent the guaranteed minimum pension that FL are obliged to pay you from age 65?

Under current rules, inflation increases on that GMP (all pre 88) would be paid with the state pension under certain circumstances.

However, you will receive state pension under single tier and it would appear that such increases will be lost. That said, as your GMP seems to have been increased by fixed rate (8.5%) in deferment, even under the current rules, your Contracted Out Deduction may well have been greater than your pre 97 Additional Pension so that it could have been a number of years before you saw any increase.

It could be an idea to consult an IFA to obtain advice as to whether you keep your current arrangement with GMP or possibly transfer out to take advantage of greater flexibility?

Try unbiased web site?

And obtain a state pension statement?