Taking part of lump sum pension
Expatmichali
Posts: 54 Forumite
My sister deferred collecting her State Pension and has been given the choice of either taking a lump sum or having it added to her weekly pension. She would like to take half the lump sum and have the rest added on a weekly basis. Can she do that or does it have to be either a lump sum or an additional weekly amount, please?
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Comments
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https://www.gov.uk/deferring-state-pension/what-you-get
If you reached State Pension age before 6 April 2016
You can usually take your extra State Pension as either:
higher weekly payments
a one-off lump sum
Re tax
https://www.litrg.org.uk/tax-guides/pensioners/what-tax-do-i-pay-my-state-pension-lump-sum0 -
Yes, it does seem to either/or, not a mixture of both! Thanks!0
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If in good health, the higher weekly payments may be a better choice over the longer term.I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.0
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I agree, it is just that she was hoping to give her kids some money now. But she has confirmed it is either/or so will have to choose.0
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