Defined Benefit Pension fund

JGJackson

My wife (retired but a WASPI woman!) has a defined benefit pensiion fund from a previous employer that is about £16k in total. Because of her last employer's pension that she now takes (approx. £800 p.a.), she's been told that she cannot use the trivial commutation option i.e. withdraw the fund, as together it just goes over the maximum £30k allowed.

Does this max £30k amount ever increase as after reading the latest update and after taking the 25% tax free amount, her annual pension from this fund would amount to just over £600 p.a. I know we are better off than a lot of people but far from being very well off, so this amount does not set the mind running as to what we can use it for. Is there anything she can do to possibly drawdown more of the fund now where it would be useful. Any advice or guidance would be very much appreciated.

Thanks in advance

dunstonh

My wife (retired but a WASPI woman!)

Best keep that quiet. GRASPI women are not popular around here.

Does this max £30k amount ever increase

It could do but it is a figure that you would expect to change often. Maybe once a decade or two.

Is there anything she can do to possibly drawdown more of the fund now where it would be useful.

We cant say without knowing the figures. You mention 25% but there wont be a 25% figure on a DB pension. So, what is the income figure with maximum lump sum and minimum lump sum? Very often, taking the income is the best option where there is a low breakeven point.

xylophone

https://www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Taking_small_pensions_Detailed_SPOT008_V1.5.pdf

The rules are explained above.

How old is your wife?

Has your wife obtained a new state pension statement?


https://www.gov.uk/check-state-pension

What inflation linking is offered on this DB pension in payment?

Is any of this pension pre 88 and/or post 88 GMP? If so, is this a public service scheme?

Is your wife still earning a salary and or contributing to a pension?