What to do with Cash Lump Sums for best returns.

tigerspill

jem16 wrote: »

Yes but it is very unlikely that the automatic lump sum is anywhere near the full 25%.

My automatic lump sum worked out at around 12%.

Thanks.
I appreciate my example probably wasn't realistic, but I was using it to try and better understand the rules.

NarkT_Ov

ggb1979 wrote: »

Don't worry I'm still working there to keep your pension nicely topped up.

Last forecast for me I only have another 32 years until retirement :j

:T

jem16 wrote: »

What's your commutation rate for giving up pension for more lump sum?

17% I think

jem16

NarkT_Ov wrote: »

17% I think

Commutation rates are normally expressed as a ratio - ie 17:1. Is that what you mean?

So if you give up £1 of pension you get £17 of lump sum?

Vortigern

NarkT_Ov wrote: »

...£54k after tax from severance

£30,000 of your redundancy money is tax free. Can you pay the rest of it into a pension (or perhaps an AVC) to avoid taxation of the excess.

Is it possible to then take the AVC as a lump sum, to avoid commuting the main scheme pension? This would depend on the rules of your pension scheme.