Lloyds bank pension scheme no1

garyelder

My wife is due to take her pension in December when she reaches 60
3 options
£10,000 yearly
or
Tax free cash 51k + £7636 a year 
or
transfer into another pension plan which she does not have
Annual rise every April 
i am looking at option 2 as she has a part time job £7000 
so only little tax is to be paid 
also she will have nearly a full pension in which we are just finalising a small figure to get the full pension 

Dazed_and_C0nfused

What does your wife think?

Do you want the inflation increase is determined by and if it's capped?

garyelder

The scheme only pays up-to 5% a year increase 
the wife prefers taking option 2 and invest the cash maybe premium bonds 

Pipthecat

Even with maximum £50k holding, Premium bonds are unlikely to return the £2,364 difference over a year unless you are very lucky (prize pool is based on 3%).  Probably a fun idea if you are looking for somewhere to hold the cash because you know that you will need it in the future, but imo not a good alternative investment for the long term.

xylophone

also she will have nearly a full pension in which we are just finalising a small figure to get the full pension 

You mean State Pension?

Your wife has obtained a state pension forecast?

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

Your wife will reach SPA in tax year 2030/31.

What is the "small payment"? Do you mean voluntary NI?

Is she currently in receipt of NI credits?

https://taxaid.org.uk/guides/information/an-introduction-to-income-tax-national-insurance-and-tax-credits/national-insurance/national-insurance-for-employees-and-employers/national-insurance-thresholds

If so, is this "small payment" required?

 With regard to the Lloyds pension, she no longer works for Lloyds so that this is a deferred pension?

If so, did she receive a statement of benefits on leaving?

Was any pre 88/post 88 GMP shown?

Will the scheme impose a state pension reduction at state pension age?