Tax on lump sum?

EdInvestor

The lump sum from the pension will also be tax free.

Next question: do you have the option of taking a bigger lump sum and a smaller pension?

If so it tends to be a tax question, and an importnat aspect is how much will your state pension be?

tigtag02

dekh wrote: »

If you are getting made redundant, unless the tax law has changed, see if you can get salary in lieu of notice - it should be tax free too. Your employer might go for this if they can spare you early as they also get a tax break on company NI (I believe).

It's definitely worth a punt. - and I could be wrong now but I managed it 4 years ago.

The PILON will not nescessarily be tax free ~ it depends on you T&C's ~ more often than not it wont be.

Belair

EdInvestor wrote: »

The lump sum from the pension will also be tax free.

Next question: do you have the option of taking a bigger lump sum and a smaller pension?

If so it tends to be a tax question, and an importnat aspect is how much will your state pension be?

I will have nearly 24 years 5mths service and be 55 when I am made redundant. Yes, I will have the option of taking a bigger lump sum and a reduced pension, but the option offered is a £4500 pa pension. I'm not sure that I should reduce it by much more than that, although we could manage quite comfortably on DH's pension when he retires in a few years time.

I have paid full NI since the age of 15.