Offered 100% tax free lump sum.

Silvertabby

Got it .
So if my wife's pot is 280k . She gets 70k tax free in her hand . She is only 61 so if you add on average life expectancy of say of 18 years making her 79 you then multiply 18 years by 12k making roughly 210k and add on the 70 k making the pot of 280k .

Almost. The notional value of a DB pension for 25% tax free lump sum purposes is 20 x pension plus lump sum so, 20 x £12K + £70K = £310K. However, this is at odds with your previous statement saying that she could have £15K pension and no lump sum. Is this final salary scheme or a private pension? If final salary, have you tried to work out the lump sum yourself without taking the commutation factor into account? For example, if your wife is in a (public sector?) final salary scheme with a commutation rate of 1:12, then I make her £15K pension (after full 25% commutation) £64,285.71 lump sum and £9,642.86 annual pension.

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One more question .
My wife is planning on retiring next year at age 61 which is what the above quotes are based on . Obviously she will not receive oap until 66.
She has crohn's disease so if she applied for early retirement for health reasons would she be entitled to any more pension .
thanks again .
Originally posted by alfmurph

It depends on the pension scheme rules. In the case of the LGPS, for example, if granted Tier 1 (the most serious level of ill health) then she would receive enhanced service up to her normal pension age age. Other public sector pension funds offer similar ill health benefits.