I'm nearly 56 and tempted to pull my 25% out of the PPF.   I'm unmarried and my partner would only get 50% of my pension if anything happened to me.
Would I be doing the right thing or am I bonkers?

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  • bowlhead99bowlhead99 Forumite
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    I'm nearly 56 and tempted to pull my 25% out of the PPF.   I'm unmarried and my partner would only get 50% of my pension if anything happened to me.
    Would I be doing the right thing or am I bonkers?
    The fact that you are unmarried doesn't tell us much about how you plan to fund the next forty years of your life.  Don't you want the income? And 50% of something is still something.
  • BrynsamBrynsam Forumite
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    If you take a tax free lump sum, your partner's pension would be 50% of a lower amount. In the PPF the partner's pension is based on the pension you are receiving at the time of your death (NOT the pension you would have been receiving had you not taken a tax free lump sum).
  • edited 31 July 2020 at 5:30PM
    westvwestv Forumite
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    edited 31 July 2020 at 5:30PM
    Are you sure you can get 25%. Mine has no lump sum.
    Edit: also,you can't "pull out" the 25%. It's only available once the pension is in payment.
  • edited 31 July 2020 at 6:25PM
    garmeggarmeg Forumite
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    edited 31 July 2020 at 6:25PM
    Brynsam said:
    If you take a tax free lump sum, your partner's pension would be 50% of a lower amount. In the PPF the partner's pension is based on the pension you are receiving at the time of your death (NOT the pension you would have been receiving had you not taken a tax free lump sum).
    For a DB pension, the spouse pension is usually unaffected by the taking of any PCLS.

    Is the PPF different to the usual convention?
  • edited 31 July 2020 at 8:08PM
    MarconMarcon Forumite
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    edited 31 July 2020 at 8:08PM
    garmeg said:
    Brynsam said:
    If you take a tax free lump sum, your partner's pension would be 50% of a lower amount. In the PPF the partner's pension is based on the pension you are receiving at the time of your death (NOT the pension you would have been receiving had you not taken a tax free lump sum).
    For a DB pension, the spouse pension is usually unaffected by the taking of any PCLS.

    Is the PPF different to the usual convention?
    Yes. As Brynsam has correctly pointed out, taking tax free cash reduces the spouse's pension.
  • BrynsamBrynsam Forumite
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    garmeg said:
    Brynsam said:
    If you take a tax free lump sum, your partner's pension would be 50% of a lower amount. In the PPF the partner's pension is based on the pension you are receiving at the time of your death (NOT the pension you would have been receiving had you not taken a tax free lump sum).
    For a DB pension, the spouse pension is usually unaffected by the taking of any PCLS.

    Is the PPF different to the usual convention?
    Yes. The PPF pays 50% of the actual pension being paid at the time of death. This can make quite a difference, especially if the original scheme paid a 2/3rds spouse's pension AND ignored any tax free cash when calculating the spouse's benefit.
  • garmeggarmeg Forumite
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    Brynsam said:
    garmeg said:
    Brynsam said:
    If you take a tax free lump sum, your partner's pension would be 50% of a lower amount. In the PPF the partner's pension is based on the pension you are receiving at the time of your death (NOT the pension you would have been receiving had you not taken a tax free lump sum).
    For a DB pension, the spouse pension is usually unaffected by the taking of any PCLS.

    Is the PPF different to the usual convention?
    Yes. The PPF pays 50% of the actual pension being paid at the time of death. This can make quite a difference, especially if the original scheme paid a 2/3rds spouse's pension AND ignored any tax free cash when calculating the spouse's benefit.
    That's a bit rubbish. Better than the alternative I suppose ...
  • BrynsamBrynsam Forumite
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    garmeg said:
    Brynsam said:
    garmeg said:
    Brynsam said:
    If you take a tax free lump sum, your partner's pension would be 50% of a lower amount. In the PPF the partner's pension is based on the pension you are receiving at the time of your death (NOT the pension you would have been receiving had you not taken a tax free lump sum).
    For a DB pension, the spouse pension is usually unaffected by the taking of any PCLS.

    Is the PPF different to the usual convention?
    Yes. The PPF pays 50% of the actual pension being paid at the time of death. This can make quite a difference, especially if the original scheme paid a 2/3rds spouse's pension AND ignored any tax free cash when calculating the spouse's benefit.
    That's a bit rubbish. Better than the alternative I suppose ...
    It's something to be aware of and take into account when deciding whether to take a tax free lump sum.
  • ChileanRedChileanRed Forumite
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    Thanks for your input folks. I'm not planning on spending the 25% or the weekly/monthly payment I would receive. Was just going to stick in a savings account.
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