Scottish pension pay out help

johnnyk39

Hi, 

I have recently turned 55 and not in the best of health so I've seriously been thinking about retirement. I have worked in the NHS for over 30 years and had a look at the stuff on SPPA website. I have contacted them a few times with no reply.

Using their calculator the estimated pay out in 2029 would be £20,000 pension and £60,000 lump sum. For Dec 2025 it would be £15,000 pension and £50,000 lump sum.

How does this work i.e. do you only get one or the other of the above?
And what parts do you need to pay tax on?

Any help would be great.

Thanks,
John

molerat

Firstly, and most importantly, which scheme (section) are you in ?

In basic terms the lump sums are not taxable but the annual pension is.

johnnyk39

Hi, I moved over to the CARE scheme in 2016 I'm sure. 

Thanks, but with the lump sum and annual pension, I take it it's one or the other or a combination of both?

Many thanks,

Albermarle

Yes you get a tax free lump sum and an annual taxable pension. 

LHW99

Using their calculator the estimated pay out in 2029 would be £20,000 pension and £60,000 lump sum

I think that word "and" is the clue - you would be entitled to both. Some schemes allow you to trade lump sum for pension or vice versa, but it's not necessarily good value to do so. Athough if it fitted your plans, that could shift the decision one way or the other.