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Should I take pension comp or pay it into new scheme?
Lemily14
Posts: 16 Forumite
Hi guys,
So the company I work for are closing my DB pension and transferring everyone into the DC scheme they have running. I have been offered about £13000 compensation for this. Question is should I take it or transfer it into the DC scheme? I can take a percentage of it so maybe 50/50 or 60/40 etc. I don’t desperately need the money at the moment but we are thinking of moving in 5 or so years so could be used to top up deposit or furnish new home. Any advice would be greatly appreciated.
Thanks
So the company I work for are closing my DB pension and transferring everyone into the DC scheme they have running. I have been offered about £13000 compensation for this. Question is should I take it or transfer it into the DC scheme? I can take a percentage of it so maybe 50/50 or 60/40 etc. I don’t desperately need the money at the moment but we are thinking of moving in 5 or so years so could be used to top up deposit or furnish new home. Any advice would be greatly appreciated.
Thanks
0
Comments
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Presumably it's tax free if paid to the DC scheme, or taxable if paid to you.
Not sure how you can expect anyone to advise you on what you want to do. If you are going to need it towards the cost of moving/furnishing a new home, and you are too young to access any pension cash, there's your answer. If you want to maximise your pension savings, put it all in the DC scheme.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0
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