Pension

[mumstheword1]

I can take my company pension in November when I am 55. I will also be getting a lump sum. Will I pay tax on the lump sum?

[mumstheword1]

Thank you all for taking the time to reply. Just so you know I took voluntary redundancy last April after 36 years. Was lucky to get a job practically straight away. But can draw my company pension a final salary scheme in November at 55. I am still working and intend to for a few years yet. Just wasn't sure if the lump sum part is tax free.

[Bathsheba]

Mikey, are you sure about getting your state pension at 65? I ask because my OH is the same age as you, and he can't get his until he's 68.

Baths
x x x

[Bathsheba]

sorry Mikey, ignore what I just said,....It IS 65 ;)

Baths
x x

[Hopkirk]

66 for me (at the moment, but that could change again)

[Peter Pedant]

i chip in my two penny worth and agrre with those who say

lump sum up to 25% not taxed
pension itself paid monthly ( or whatever ) taxed as income

[TonyV]

I took 25% of my company scheme because company offered an incentive for people to reduce companies liability.
But you will need to pay tax on any interest on the on earning from your invested remaining 75% depending on your total earnings as with any other earnings.

[TonyV]

Peter you and others beat me to it lol

[Peter Pedant]

never mind Tone
got there
doesnt old age and a pension slow one up ?

[Peter Pedant]

Ha tax on interest - good one
rates are as high as 0.1 per cent per year innit ?

likely to be changed to tax free in april 2016 - tax on interest I mean to encourage saving hem hem

[TonyV]

Getting 3% on mine but it's locked away for a coupe of years but can be accessed at any time if required. With inflation so low you are not going to get an excellent return but better than putting it under the bed