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What to do with £3.5k APeCs?
GabbaGabbaHey
Posts: 1,111 Forumite
I will shortly be 60 and I have received my retirement pack for my RBS pension - it's a DB scheme and I'm planning to take it at £19,376 per year rather than £98,694 tax free lump sum + £14,799 per year, unless anyone convinces me otherwise. (Although currently working elsewhere, I plan to stop at 60. I have c£10k per year in other pensions, reasonable equity/savings, no debt and no dependents.)
What I don't know what to do with is some APeCs. I can take £919 cash free and £2,759 taxed (presumably at 40%). I also have the option of using this £3,678 to either buy an annuity or transfer it to another pension fund. Is there any point in doing either of these with such a relatively small sum, or should I just take it in cash?
What I don't know what to do with is some APeCs. I can take £919 cash free and £2,759 taxed (presumably at 40%). I also have the option of using this £3,678 to either buy an annuity or transfer it to another pension fund. Is there any point in doing either of these with such a relatively small sum, or should I just take it in cash?
Philip
0
Comments
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My wife saves APeCs through RBS and as it is linked to the main DB scheme can take the maximum allowable tax free lump sum from the APeC rather than commuting pension. On such a small amount you should be able to take it all tax free.0
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If you don't NEED it all, then keep in invested to grow for future needs. It remains accessible as and when needed.I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.0
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