Redundancy / early retirement

bolwin1

Henryk1 said:

Redundancy v early retirement.
 I know that if I take a redundancy package the first £30k would be tax free, but does the same apply if its an early retirement instead?

No - the £30K tax free only applies to a redundancy payout - if you want to discuss further, it's probably best to start your own thread. 

hyperhypo

Good luck with it OP.  I've just done same in March...although my NRA for my DB scheme is in c.  18 months time so i've not considered looking at getting hands on it earlier. My NRA is 63 too,  so it would appear to me that , given your age an NRA of 60  coupled with a modest reduction for taking it from 5 years earlier appears attractive.    I put a chunk of mine directly into pension too. Unfortunately for me as my leaving date was 31st March and i didn't get my final payment until late April ...my final cheque ..company RTI transfer ,  appeared to have got lost at the hmrc end. It didn't appear in last years, tax of or this, and yet the element contained the £30k tax free element and a hefty taxable element too...but the record of it has taken me months, many calls to hmrc , to fish it out of whichever crack it fell into, as it hadn't appeared in this years PAYE until recently. It wasn't my former employer's fault either, the RTI to HMRC was correct, i suspect it was timing that caused the issue.   As you pointed out earlier , dealing with redundancy planning can be a full time occupation