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Receiving pension and lum sum

Hi all,

If you recieve your pension at 60 is is obviously taxable.

What about the Lum Sum (Annuity) is that also taxable.

What are the pros and cons of commuting some of your pension

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    if your pension provides for a lump sum in addition to a regular payment then the lump sum is generally tax free while the regular payment is taxed in line with your income (although you don't pay NI on it).

    The lump sum is not an annunity

    the pro and cons of cummuting part of your income to the lump sum depend upon your circumstances.
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