Can I claim my civil service pension lump sum early

Yohan1960 · 18 April 2015 at 9:48AM

I was a civil servant and took redundancy last year and, at the time, chose not to take my pension lump sum. I am due to collect my lump sum at 60 (in five and a half year's time). Circumstances have changed and I'm now considering whether to request the lump sum. Am I able to do this and how much would it cost me? Would I have to pay a good percentage in tax and would it also reduce the amount of the lump sum due to early payment?

molerat · 18 April 2015 at 10:01AM

You can claim the lump sum and commence taking the pension at age 55 (could be earlier in certain circumstances) if the scheme allows it and at a reduced rate due to taking it early. You will not pay tax on the lump sum but the monthly pension will be liable to tax. You can not take the lump sum without commencing the pension. Consult your particular scheme rules which will be available on line.

atush · 18 April 2015 at 12:57PM

I believe you have to wait til age 55, and then get a much reduced pension and LS if you retire 5 years early.

Can you get another job? Do you have a spouse? Are you of good normal health?