Taking pension lump sum at 55

Gig1968

Hi all just a quick question I have no answer to.
I have a lump sum payable at 60. The lump sum payable will be £19k . Annual pension £6k
It's a final salary scheme threw an old public company.
I have no idea if this is has any relevance but on my pension statement but therd is a line called total proportion of life time allowance 34%. I have no idea if this is relevant.
I wonder if there is a method of calculating to getting an indicative value of 25%  of the value of the lump sum for taking at 55

Cheers

Dazed_and_C0nfused

Not sure what you actually mean?

What relevance has 25% got?

Gig1968

Is 25% the value you can take when you are 55. 

Thrugelmir

As a guide only. Reduce by 5% for every year you take the pension earlier. Five years 25% reduction. Be closer to £14,250. 

Dazed_and_C0nfused

A lot depends on what pension scheme it is as well. 

I think sometimes the reduction for taking it early isn't the same for the lump sum as it is the pension itself.  So pension might drop by 25% if taken at 55 but the lump sum won't necessarily be 25% less.

Gig1968

So am I allowed to take the full £19k and get 25% tax free. But then get my £6 annual pension reduced by 25% (5x5) as you mentioned above

Silvertabby

No, the whole of the tax free lump sum is... tax free.  The annual pension then forms part of your taxable income.

Are you quoting figures from your deferred benefit statement, or are they more recent?  Which pension scheme is it?

Gig1968

It's an esps which was the cegb then was powergen and is now part of eon how confusing

Dated 2019.
So all £19 k no tax.
Is that just because I'm taking my pension earlier ..
I was just looking at annuities and u reckon my pot might be worth somewhere between £140 and£180k depending on which tool you use. I was considering may be using that as an option.

Thrugelmir

Dazed_and_C0nfused said:

A lot depends on what pension scheme it is as well. 

I think sometimes the reduction for taking it early isn't the same for the lump sum as it is the pension itself.  So pension might drop by 25% if taken at 55 but the lump sum won't necessarily be 25% less.

Lump sums are often multiples of pension. Reduction proportionately affects both. 
In this instance I'm assuming 3 times. 

sandsy

With with a final salary scheme, you have to take your lump sum and start taking income at the same time. 

Gig1968

If it was reduction in both the final payment and the monthly pension of say 25% that would probably not be too bad.
I have a slightly similar pension in the same group esps as I was with npower for a number of years numbers are £14k final  and just over £4k annual. I really should have joined them together but I'm not sure how that works as this one isn't payable till I'm 65.
As for the comment earlier thanks for that. Can I transfer the value of my pension at 55 put it into an annuity take 25% and then take bigger monthly payments across say ten years.