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Pension Commencement Lump Sum
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As I now have the actual figures from the PPF I thought I would update!
60 tranche £8816.51 or take at 55 £8371.56 (95.0%)
63 tranche £3946.57 or take at 55 £3554.16 (90.1%)
Total £12763.08 or take at 55 £11925.72
Or, with maximum commutation at 55
Total of £9988.80pa + TFLS £66591.50
So, at 55 if I take maximum commutation available I will receive £1936.92pa less than if I choose not to commute. That extra income will be taxed at 40% so £1162.15pa. The PPF pension increases at CPI subject to a maximum of 2.5%pa. With that in mind am I correct in thinking that my TFLS would need to grow by CPI(to a max of 2.5%) + 1.75% ie a maximum of 4.75% pa to break even?
My intention would be to invest the money in S+S ISA's for myself and Mrs A. over the next couple of years.
As ever any comments appreciated.0
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