How long does it take for your TFLS to be paid?

pensionpawn

Probably a very short thread. Tried Googling this to no avail. So you hit 55 and you ask your pension company(s) for your 25% TFLS. How long does it usually take to arrive in your bank account? Or should I rephrase that? How long should I have to wait, is there a maximum number of weeks / months? Cheers.

wjr4

Have you asked your pension provider? It can be paid the day you turn 55 (with some providers) if you sell some of the funds to ensure there it enough money in cash the day you turn 55.

camelopardis

I'm 53 and recently asked for my very first pension payment from Zurich ( I have a protected retirement age). From the time of asking to actually receiving payment was exactly 14 days. (They made two seperate payments, the TFLS and the balance).

dunstonh

Anything from 20 minutes to 2-3 weeks.

pensionpawn

Thanks everyone. No, I hadn't thought of asking the pension provider, mainly because it's the wife scheme. We were just wondering if it was likely to be longer than a month (her final pay amount). If they're happy to take an advance notification and send her a cheque for her 55th birthday it might (for once) get me out of jail for avoiding another naff birthday present!

drumtochty

If she is still working to the day here pension starts. Legally the pension scheme can do nothing until they have a formal note from the employer that the employee has left employment with the company which will take a day or two.



I would expect say 2 weeks to have the money in her account or you could ask her to ask her pension provider which is what I would do if the date was important to me!!!!!!!!!!!!!!1

pensionpawn

drumtochty wrote: »

If she is still working to the day here pension starts. Legally the pension scheme can do nothing until they have a formal note from the employer that the employee has left employment with the company which will take a day or two.



I would expect say 2 weeks to have the money in her account or you could ask her to ask her pension provider which is what I would do if the date was important to me!!!!!!!!!!!!!!1

Are you sure? I thought that anyone can access their pension, TFLS and / or drawdown, whilst still employed the main caveat being your annual allowance drops if you take drawdown.

Linton

pensionpawn wrote: »

Are you sure? I thought that anyone can access their pension, TFLS and / or drawdown, whilst still employed the main caveat being your annual allowance drops if you take drawdown.

The law does not prevent you taking the TFLS and drawdown. It does not give you the right as other factors such as pension scheme rules may not allow it. Frequently you cannot take an employers pension whilst still being an active member of the scheme.

xylophone

Is the case that the OP's wife is a member of a DC scheme through her employment and is now leaving the job?

The final payments into the scheme will be those from her final month's salary?

pensionpawn

xylophone wrote: »

Is the case that the OP's wife is a member of a DC scheme through her employment and is now leaving the job?

The final payments into the scheme will be those from her final month's salary?

Yes, she has a DC scheme through her employer however also a Sipp with HL. One plan we are exploring is that she crystallises just enough of her Sipp at 55 to give her a £7400 TFLS (within recycling rules) to give her the option of working a little longer and increasing her contributions. However she may decide to fully quit work (unlikely as she'll be home alone and soon become bored) of go part time with her current or alternative employer. We were just interested to know how long it takes for the TFLS to arrive to compensate for any effective drop in income. She isn't planning on drawdown within the first 6 months.

dunstonh

Remember that taking the 25% early means you will not be able to utilise phased flexi access drawdown in retirement. That is an extremely popular method and a short term gain in taking PCLS now could be lost over the long term. (phased generally allows a greater amount of PCLS to be taken than upfront)

We were just interested to know how long it takes for the TFLS to arrive to compensate for any effective drop in income.

Depends on provider or platform. Some will have it in your bank within 20 minutes. Some 3 weeks. Most are somewhere in between.