Looking to check a few details regarding the calculation of the tax free lump sum. I know this is a very complex area, so before, I actually do anything I have every intention of getting professional advice. So on this occassion I am just trying to get a ballpark figure and clarify some of my options.
I am 56 and not working. I am lucky and have two occupational pension from previous employers.
The first one is a defined benefit scheme, 20 year,3 months service, payable when I am 60. I also have an AVC with this scheme, which I intend to use to pay my tfls, so I have no plans to reduce the defined benefit pension.
The second one is a defined contrbution scheme, 6.5 years service, currently invested in a Buy-out-Bond.
In terms of calculating a final salary, the first scheme has a last salary on file which they have dynamised to calculate a tfls. The second scheme have used a different salary, thus arrived at a different tfls.
My questions are, can I retire from one scheme without retiring from the other? e.g. can I take the tfls now from the second scheme and wait until I am sixty for the defined benefit?
In terms of the calculation of final salary, does this happen twice each independently from the other?
There appears to be options regarding which figures are used in the calculation as 'salary' e.g. as I understand it, I can use the highest average salary for three (consecutive or any?) years in the ten years before my leaving date? Which leaving date?
Also, there are other complications (hence the need for professional advice). In my last year of work my salary was reduced in the last six months as I was ill. Also in the two years before that I was working a 4 day week.
What information do I need to provide for these calculation, e.g. will P60s do? I have some letters of appointment, salary reviews etc, but not all.
I am trying to decide whether I could get any benefits now or to wait until I am 60 and I also want to collate the information I require for a professional review.
many thanks
I am 56 and not working. I am lucky and have two occupational pension from previous employers.
The first one is a defined benefit scheme, 20 year,3 months service, payable when I am 60. I also have an AVC with this scheme, which I intend to use to pay my tfls, so I have no plans to reduce the defined benefit pension.
The second one is a defined contrbution scheme, 6.5 years service, currently invested in a Buy-out-Bond.
In terms of calculating a final salary, the first scheme has a last salary on file which they have dynamised to calculate a tfls. The second scheme have used a different salary, thus arrived at a different tfls.
My questions are, can I retire from one scheme without retiring from the other? e.g. can I take the tfls now from the second scheme and wait until I am sixty for the defined benefit?
In terms of the calculation of final salary, does this happen twice each independently from the other?
There appears to be options regarding which figures are used in the calculation as 'salary' e.g. as I understand it, I can use the highest average salary for three (consecutive or any?) years in the ten years before my leaving date? Which leaving date?
Also, there are other complications (hence the need for professional advice). In my last year of work my salary was reduced in the last six months as I was ill. Also in the two years before that I was working a 4 day week.
What information do I need to provide for these calculation, e.g. will P60s do? I have some letters of appointment, salary reviews etc, but not all.
I am trying to decide whether I could get any benefits now or to wait until I am 60 and I also want to collate the information I require for a professional review.
many thanks