Lump sum Question

penquest

Is the lump sum i receive from a pension classed as earnings?
i know it sounds strange, but as my daughter is at uni the amount I earn reflects in the grant she receives.

atush

the 25% TFLS? No, it would be classed as savings.

Any money taken from pension after the TFLS will be classed as income.

jamesd

But do notice the difference between "earnings" and "income". Any pension income beyond the lump sum still might not count as earnings because it isn't earned income.

penquest

Thanks for this, I will continue to work part time after taking pension to supplement. The lump sum is tax free as part of my final salary pension.