Pensions Planning

System

This discussion was created from comments split from: Pensions Planning: The NUMBER.

Nidgi

Hello everyone

It's my first post, so here goes…

I tracked down my old Royal Mail pension pot (worked there 1991-2001 PT then Full Time) which tells me i've got 6.5 years pension and a final salary of £16,500..

I'm looking at taking the whole pot as cash, any idea with those figures what i could expect as a cash lump sum (100%)

I'm 55 in 7 weeks..

Thanks in advance..

Nidgi

Further information..

It says i've annual pension [NRA60 benefits] of £1,458 + supplement payable until state pension age £369 + pension increase amount £1,652

With current value of annual pension £3,480

I'm just hoping someone can give me an idea at what to expect if i withdraw the lot at age 55

I umderstand there is a charge for 'early withdrawal'

Thanks again

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82021831#Comment_82021831

You would be better starting your own thread as your query isn't really about the point of this thread.

QrizB

Welcome to the forum!

I tracked down my old Royal Mail pension pot (worked there 1991-2001 PT then Full Time) which tells me i've got 6.5 years pension and a final salary of £16,500..

It says i've annual pension [NRA60 benefits] of £1,458 + supplement payable until state pension age £369 + pension increase amount £1,652 .. With current value of annual pension £3,480

Ok, so you've got a Final Salary pension. Congratulations, that's well worth having.

I'm just hoping someone can give me an idea at what to expect if i withdraw the lot at age 55

You probably can't withdraw it without spending £5k+ on professional advice, and the advice will probably tell you not to withdraw it but to leave it where it is.

Nidgi

£5k on professional advice just to be told it's best to leave where it is, that's insane..

MSE_Stephen

Hi @Nidgi

We've split this into a new thread for you.

QrizB

https://forums.moneysavingexpert.com/discussion/comment/82021876#Comment_82021876

It might be insane, but it's the law. It's meant to make sure people with Final Salary pensions understand what they're giving up if they transfer out and don't get scammed by scammers.

Roger175

https://forums.moneysavingexpert.com/discussion/comment/82021876#Comment_82021876

I'd counter that it would be insane to attempt to "withdraw the lot at age 55".

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82021876#Comment_82021876

Indeed, it is insanely cheap.

Remember this is a transaction that is unsuitable for nine out of ten people. It's a regulatory hot potato.The PI insurers really don't like it. And it's a really intensive piece of work. A good deal of the cost is in the risk.

Effectively, you're wanting to do something that is unlikely to be suitable.

LHW99

https://forums.moneysavingexpert.com/discussion/comment/82022203#Comment_82022203

And if you did you'd end up with an extreme tax bill (£5k would be nothing in comparison).