Lump sum or full pension?

mgdavid

mumsiedebs wrote: »

62 now. i'm still working but would love to retire early. If i didnt take the lump sums but did take the full pensions from both I would still be getting a lot less than my salary(even after tax ) and have limited savings for any capital needs or wants. We like nice holidays! We have our own house so any repairs etc would be a challenge without a lump sum.
I was thinking of using the lump sum to increase my pension until SPA.
If i remain at work for another year then the DB lump sum could potentially be used towards an interest only mortgage for a property to rent out to bring in extra income.
playing with ideas as the lottery isnt coming my way.

If you think pensions are complicated IMO it would be madness for you to even for a second contemplate going into Buy-To-Let.


I note you 'like nice holidays' but see no signs that you've worked out how much you need for basic living in retirement and how you will get to that level of income. You need to start with the objective (the end position) and work backwards from that.

Jules023

Another thread states the commutation factor is £1 for every £19.50 but you're saying it's 15.60 - does this vary and if so why?

Jules023

Also, does this mean for every £15.60 or £19.50) of tax free lump sum you can increase your pension amount by £1?

mgdavid

Jules023 wrote: »

Another thread states the commutation factor is £1 for every £19.50 but you're saying it's 15.60 - does this vary and if so why?

15.60 is 19.50 minus standard rate income tax....