Pension information

Timetoretire

@Silvertabby
I called the pension people. The lady didn’t understand my query, said “ of course it is correct” 
move asked for someone else to call me back and in the mean time I have emailed my query with the pics . 

Thanks for helping me understand this query. 

JoeCrystal

It's all pretty self-explanatory and nothing seems to be out of the norm. Which figures are you having trouble with?

Timetoretire

Option 3 
maximum lump sum , which includes the AVC and reduced pension on the paper AVC illustration is the same as the online projection, but the online does not include the AVC…. How can they be the same? 

JoeCrystal

Ah! I see the other thread and why you re so confused. If you see that there is lower pension.

You are exchanging £3,573.74 per year pension to get £42,884.88 lump sum

Your £5,013.81 is already taken into account within the Retirement Grant within Option 2 and Option 3.

JoeCrystal

Timetoretire said:

Option 3 
maximum lump sum , which includes the AVC and reduced pension on the paper AVC illustration is the same as the online projection, but the online does not include the AVC…. How can they be the same? 

Is it possible because that statement you are looking at is from 24 April 2025 and your AVC which change on a daily basic and you are looking at current figures? Could that be a reason? You really need to show the whole online picture to be honest. I am not making any sense of it, either to be honest due to no information at all on the photo of the snapshot of the online pension website on the smartphone! 

JoeCrystal

Timetoretire said:

Option 3 
maximum lump sum , which includes the AVC and reduced pension on the paper AVC illustration is the same as the online projection, but the online does not include the AVC…. How can they be the same? 

Your retirement grant on the smartphone does include the AVC. I just checked the figures:

£13,365.30 minus £9,791.71 equals £3,573.59
£3,573.59 multiples by 12 equals £42,883.08
£65,277.92 minus £17.381.03 and minus £42,883.08 equals £5,013.81

I vaguely recalled that they have to pay you AVC so they included it anyway maybe?

Timetoretire

Some more pics from the online calculator. As far as I am aware the calculator is up to date . It does state that any figures seen DO NOT INCLUDE AVCs. That why I can’t get my head round it , as I can see option 1 and 2 include the avc. Option3 is confusing me.. I feel the AVC is not taken into account! 

Timetoretire

Here it is. 

JoeCrystal

Ohhh, that's interesting! I think I can see why you think that. Could you move it to the middle so it is 50% 50%? I am curious as what it will show. But from the reckon, it does include the AVC at maximum liump sum but not at minimum lump sum. What does the explanation for What is this? beside the lump sum and annual pension says?

For what it is worth, I think you are right in questioning it.

Silvertabby

The on line calculator does include your AVCs - must be a recent improvement to the service, or did you perhaps input the AVC amount at some point?

Ignoring the AVC for the minute, maximum commutation using just the standard pension of £13,365.30 and the standard lump sum of £17,381.03 gives us £9,523.11 pension and £63,487.37 lump sum.  Adding all of the £5,013.81 AVC to the lump sum would bust the 25% limit, so your option 3 calculation offers the maximum tax free cash of £65,277.92 and a pension of £9791.71.  In basic terms, your AVC has been split between your pension and your lump sum.

I make (all) the figures on your letter spot on.  Don't worry about the on line calculator now - even though that seems to include your AVC, it was only ever meant to be a rough guide before you reached to stage of a proper quote, which you now have.