NHS 1995 forecast for next July

Scalingback

My first post so please be kind? I've been hovering and probably need to speak to an adviser but hey...think this is a nice position to be in ...but not sure!
I now have a pension forecast for next year £30k lump sum and £12k per annum pension! I will be 60 years young. Two more small private pensions when I'm 65 and No state pension until ...66/67 who knows I've been stitched up!
My circumstances are live alone, own home(small mortgage) and self employed part time.

My question is really about the lump sum bit ...it's says tax free ? Thought it's only 25% tax free reading others posts. Leaving the pension where it is isn't an option as there isn't any benefit to me. 1995 scheme.
I want to minimise my tax payments tbh ...over the years I've really helped the economy!

Silvertabby

Scalingback wrote: »

My first post so please be kind? I've been hovering and probably need to speak to an adviser but hey...think this is a nice position to be in ...but not sure!
I now have a pension forecast for next year £30k lump sum and £12k per annum pension! I will be 60 years young. Two more small private pensions when I'm 65 and No state pension until ...66/67 who knows I've been stitched up!
My circumstances are live alone, own home(small mortgage) and self employed part time.

My question is really about the lump sum bit ...it's says tax free ? Thought it's only 25% tax free reading others posts. Leaving the pension where it is isn't an option as there isn't any benefit to me. 1995 scheme.
I want to minimise my tax payments tbh ...over the years I've really helped the economy!

That's better than most, not as good as some.

As your NHS pension is public sector/final salary,your 30K is indeed tax free - you've been reading about private pensions, which are only 25% tax free/75% taxable.

stoozie1

Hi, your lump sum should be £36k if your annual pension is £12k, so it might be worth double checking your documents/TRS.

hyubh

My question is really about the lump sum bit ...it's says tax free ? Thought it's only 25% tax free reading others posts.

The '25%' still technically applies, however your entire lump sum will be within that. Rather than no lump sum by default and an option to commute 25% of the 'value' of the pension for tax purposes, you have a standard lump sum that contributes to the total 'value' of the pension in the first place.