I have a DB pension that comprises a annual payment, lump sum and associates AVCs
I am trying to work out the Pension Value as far as TFLS is concerned if taking before the NRA for the scheme..
Obviously the AVC and Lump sum are fairly easy as their values are clearly defined.
Regarding the DB value - the value is 20 times the annual pension payment.
My question is what annual payment amount is used? Is it the value at Normal Retirement Age for the scheme as detailed on my pension statement (in my case at 60), or if I am planning to take it earlier with actuarial reductions - is it this "reduced" annual payment value I use?
Obviously the latter will be significantly lower - hence the 25% TFLS I can take will be lower as well.
I dont see why the TFLS should suffer due to me taking early as the Pension Value in reality remains unchanged - just taking it in a different way (less for longer) - but that might just be the way it is. Not sure.