Pension protection fund , what to do with pension

mercedes125

Hubby is in late 50s and has a pension in PPF he was thinking of having 25% tax free lump sum it looks like if he does this he will have to have the rest as a monthly payment of roughly £71 until death . So if so dosnt look like there will be anything to come in later years .
Also he could take £20,000 as lump sum ( trivial commutation ) but would pay a fine of 55% .
Which would be the best thing to do if he leaves it until he’s 65 it looks like he will only gain another £1.000 lump sum .
Thanks

Marcon

mercedes125 wrote: »

Hubby is in late 50s and has a pension in PPF he was thinking of having 25% tax free lump sum it looks like if he does this he will have to have the rest as a monthly payment of roughly £71 until death . So if so dosnt look like there will be anything to come in later years .
Also he could take £20,000 as lump sum ( trivial commutation ) but would pay a fine of 55% Trivial commutation is only possible where someone has pension benefits totalling no more than £30,000, excluding state pension. Are you sure your husband has no other pension entitlements from other employments? These would need to be included. You refer to a 'fine' of 55%. It isn't a fine, it is tax - and that would only be payable at that level if the payment made by a pension scheme is known as 'unauthorised'. Where did you get this information? It doesn't sound quite right. .
Which would be the best thing to do if he leaves it until he’s 65 it looks like he will only gain another £1.000 lump sum . The pension will continue to revalue (increase) until he reaches the scheme's normal retirement age.
Thanks

The best thing to do might be to get full information from the PPF and then ring the Pensions Advisory Service and talk it thorough with them to be sure you understand the options. They can't advise you, but will give free, impartial and expert information, which is often all you need to make a decision. https://www.pensionsadvisoryservice.org.uk