Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • markbsac
    • By markbsac 9th Jan 20, 9:42 AM
    • 100Posts
    • 35Thanks
    markbsac
    do i need to take my lump sum in one go
    • #1
    • 9th Jan 20, 9:42 AM
    do i need to take my lump sum in one go 9th Jan 20 at 9:42 AM
    hi again,

    when i take my pension lump sum do i have to take it all at once...or can i take it in smaller chunks whenever i want it...im in a final salary db scheme...if i take it all at once im only going to have to put it into other savings accounts ect...and ive been told its best to leave it in the pension fund
Page 2
    • markbsac
    • By markbsac 10th Jan 20, 5:30 PM
    • 100 Posts
    • 35 Thanks
    markbsac
    Are you saying you can choose whether your wife gets 0%, 50% or 100% of one or more of your DB pensions, albeit at a cost?
    Originally posted by AlanP
    yes i can choose from my astra zeneca pension...my military pension no that has to go 100% to me...below is from my pension quote

    Your benefit options with your Retirement Account
    and Investment Account
    You can choose the level of spouse’s
    pension from the three levels shown or
    anything in between
    Minimum spouse’s
    pension
    50% spouse’s
    pension
    100% spouse’s
    pension
    Last edited by markbsac; 10-01-2020 at 5:39 PM.
    • cloud_dog
    • By cloud_dog 10th Jan 20, 5:48 PM
    • 4,744 Posts
    • 2,986 Thanks
    cloud_dog
    And what effect do those options have on your pension number and the available TFLS?
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • markbsac
    • By markbsac 10th Jan 20, 6:15 PM
    • 100 Posts
    • 35 Thanks
    markbsac
    Whats tfls
    • eskbanker
    • By eskbanker 10th Jan 20, 6:47 PM
    • 12,142 Posts
    • 15,050 Thanks
    eskbanker
    Whats tfls
    Originally posted by markbsac
    The subject of the thread!
    tax free
    Originally posted by markbsac
    lump sum
    Originally posted by markbsac
    • markbsac
    • By markbsac 10th Jan 20, 7:13 PM
    • 100 Posts
    • 35 Thanks
    markbsac
    The subject of the thread!
    Originally posted by eskbanker
    thanks ill post the difference of all three later.
    • drumtochty
    • By drumtochty 10th Jan 20, 7:30 PM
    • 324 Posts
    • 189 Thanks
    drumtochty
    my ni is almost there at the moment i lose 5.00 a week nothing im worried about..i have my astra zeneca pension and military pension...until i pop my cloggs :-)
    Originally posted by markbsac

    Not a good enough answer I'm afraid.



    You retire May 2020.
    Check your state pension forecast again at September 2020.
    By that time your 2019 2020 NI contribution will be included in your state pension forecast.


    If your SP forecast is at the maximum value it can be, then a good job done.


    If not you can earn up to 1,000 tax free from self employed income.


    Register as self employed with HMRC by October 2020 takes 10 minutes.



    Most people declare say 200 from dog walking or ebay selling junk etc.


    In April 2021 add the self employed page to your tax return and declare the earnings, there is no self employed earnings police.


    Pay 150 approx Class 2 NI contributions and that will add 5 a week to your state pension.


    Even you are only 1.00 a week short of the maximum state pension, that will give you 52, 42 after tax a year for say 17 years for the average life span.



    Pay 150 and get back 900 or 1,100 if you add in inflation.


    For 40 minutes work!!!!!!!!!!!!!!


    Then pay 2,880 into a SIPP prior to you getting your works pension and get 720 a year tax relief if your existing navy pension is less than say 10,000 a year.


    Free time is expensive and having lunch out or hobbies does cost!
    • markbsac
    • By markbsac 11th Jan 20, 1:38 AM
    • 100 Posts
    • 35 Thanks
    markbsac
    And what effect do those options have on your pension number and the available TFLS?
    Originally posted by cloud_dog
    50% pension to my wife my pension drops 939 a year
    100% it drops 1752 a year
    obviously 0% no drop at all.
    • markbsac
    • By markbsac 11th Jan 20, 1:39 AM
    • 100 Posts
    • 35 Thanks
    markbsac
    Not a good enough answer I'm afraid.



    You retire May 2020.
    Check your state pension forecast again at September 2020.
    By that time your 2019 2020 NI contribution will be included in your state pension forecast.


    If your SP forecast is at the maximum value it can be, then a good job done.


    If not you can earn up to 1,000 tax free from self employed income.


    Register as self employed with HMRC by October 2020 takes 10 minutes.



    Most people declare say 200 from dog walking or ebay selling junk etc.


    In April 2021 add the self employed page to your tax return and declare the earnings, there is no self employed earnings police.


    Pay 150 approx Class 2 NI contributions and that will add 5 a week to your state pension.


    Even you are only 1.00 a week short of the maximum state pension, that will give you 52, 42 after tax a year for say 17 years for the average life span.



    Pay 150 and get back 900 or 1,100 if you add in inflation.


    For 40 minutes work!!!!!!!!!!!!!!


    Then pay 2,880 into a SIPP prior to you getting your works pension and get 720 a year tax relief if your existing navy pension is less than say 10,000 a year.


    Free time is expensive and having lunch out or hobbies does cost!
    Originally posted by drumtochty
    thats great advice thank you :-)..just been on gov gateway as of april 2019 i need to make 2 more years contributions to get 168 a week at the moment im at 163 a week.
    Last edited by markbsac; 11-01-2020 at 1:55 AM.
    • cloud_dog
    • By cloud_dog 11th Jan 20, 10:03 AM
    • 4,744 Posts
    • 2,986 Thanks
    cloud_dog
    50% pension to my wife my pension drops 939 a year
    100% it drops 1752 a year
    obviously 0% no drop at all.
    Originally posted by markbsac
    Hi

    What I was trying to get you to confirm originally (post before previous one) was what is your wife's pension position? How well funded is she if she only got half or none of your pension?

    My last post was trying to clarify what the value of half pension for your wife would be based on? For my scheme my wife's 50% pension would be based on my maximum pension even if I took the full TFLS which reduces the pension.

    Where I'm going with all this rambling is that I think you need to understand your wife's pension provision in order to make a decision, not just on how it reduces your pension. If your wife's 50% pension is based on your maximum pension and if she doesn't have any/much pension provision of her own then it may make sense to take the full TFLS so as to offer some additional income should you pop your clogs.

    This is by now way a comprehensive answer as there is so little we know about your situation but I am trying to extract information from you.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • markbsac
    • By markbsac 12th Jan 20, 3:46 AM
    • 100 Posts
    • 35 Thanks
    markbsac
    Hi

    What I was trying to get you to confirm originally (post before previous one) was what is your wife's pension position? How well funded is she if she only got half or none of your pension?

    My last post was trying to clarify what the value of half pension for your wife would be based on? For my scheme my wife's 50% pension would be based on my maximum pension even if I took the full TFLS which reduces the pension.

    Where I'm going with all this rambling is that I think you need to understand your wife's pension provision in order to make a decision, not just on how it reduces your pension. If your wife's 50% pension is based on your maximum pension and if she doesn't have any/much pension provision of her own then it may make sense to take the full TFLS so as to offer some additional income should you pop your clogs.

    This is by now way a comprehensive answer as there is so little we know about your situation but I am trying to extract information from you.
    Originally posted by cloud_dog
    hi thanks....yeah she only has a very small pension at 60 and her state pension at 67...we are both the same age 57 this year, so one could die before the other but if i go before im 67 there will be enough in savings for her to reach state pension age...so i was thinking about 0% we want to enjoy the 25% tax free lump sum as soon as we get it and also enjoy the bigger pension a month between us...it depends i suppose on what we agree to do.
    • cloud_dog
    • By cloud_dog 12th Jan 20, 2:42 PM
    • 4,744 Posts
    • 2,986 Thanks
    cloud_dog
    hi thanks....yeah she only has a very small pension at 60 and her state pension at 67...we are both the same age 57 this year, so one could die before the other but if i go before im 67 there will be enough in savings for her to reach state pension age...so i was thinking about 0% we want to enjoy the 25% tax free lump sum as soon as we get it and also enjoy the bigger pension a month between us...it depends i suppose on what we agree to do.
    Originally posted by markbsac
    Hi

    Thanks for the information. Obviously, we need to make decisions we feel comfortable with going forward.

    Just as a comment really.... I will be taking the full TFLS and investing it in S&S ISAs. My company scheme (as mentioned) pays a pension of 50% of the maximum pension to the dependant. I expect my wife to out last me and therefore I wish to ensure she has more than adequate pension provisions (TFLS in S&S ISAs) to mitigate the reduction on pension payments she will experience on my passing. She also has fairly limited pension provision in her own name (although we are making every effort to rectify this as much as possible over the coming years).
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • markbsac
    • By markbsac 12th Jan 20, 7:43 PM
    • 100 Posts
    • 35 Thanks
    markbsac
    yeah its a difficult one im prob looking at her having a 50% pension that along with her state pension will be ideal, but we will have a chat about it when i come to draw it.
    • markbsac
    • By markbsac 14th Jan 20, 12:17 PM
    • 100 Posts
    • 35 Thanks
    markbsac
    just had an email from my pension fund...i have to take it all in one go...or transfer it out to a drawdown for more flexibility
    • cloud_dog
    • By cloud_dog 14th Jan 20, 6:54 PM
    • 4,744 Posts
    • 2,986 Thanks
    cloud_dog
    This is usual for DB schemes, at the NRA you start taking the pension and take the TFLS.

    Usually you are able to take a smaller percentage of the TFLS if you wish (this, obviously, would have the effect of increasing your annual pension amount).
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • markbsac
    • By markbsac 15th Jan 20, 8:40 AM
    • 100 Posts
    • 35 Thanks
    markbsac
    ill take it in one lump sum and reinvest it
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

98Posts Today

1,674Users online

Martin's Twitter