Husband wants to access a further drawdown from Royal Mail pension 16 March at 10:50AM in Pensions, annuities & retirement planning 3 replies 328 views

Wiltsmum

Husband is current RM worker, 60 next month. He took a lump sum in 2018 at 55. He receives a small monthly pension. He now wants to access the rest of the pension pot and has been told that is not possible. He is not very money savvy and did not understand why.

wjr4

Is it a final salary pension? If yes, that’s why. 

dunstonh

From your description, it sounds like your husband commenced the money purchase side of the Royal Mail pension.  i.e. didnt do drawdown but actually commenced the pension.     Hopefully, he was allowed to opt back in again otherwise that has wasted a lot of money.  

The older Royal Mail pension is a defined benefit scheme and doesnt offer drawdown (not that he did drawdown on the other scheme).

xylophone

He took a lump sum in 2018 at 55. He receives a small monthly pension.

Do you mean that your husband chose to access his defined benefit pension?

He was offered a tax free pension commencement lump sum and a monthly pension?

This is now the position for the rest of his life.

Presumably should he pre-decease you, there will be a widow's pension?

Is he now a member of a defined contribution scheme?

Has he checked on his state pension forecast?

https://www.gov.uk/check-state-pension