Pension Payments

[jackthehat]

Mrs JtH has received notification that she has a small pension from a company she worked with 25 years ago.
It is in the sum of £1,306.52. She has also been given a lump sum figure tax-free.

Can any of you knowledgeable peeps work out how much, at current rates, she would receive weekly/monthly from this?

Thanks.

[ToraToraTora]

It varies hugely, depending on age, indexing, guarantee period, escalation, JLFD? etc etc. Annuity rates are better than ever at the moment but for such a small amount they'll probably have a mechanism for you to take the lot. Anyway she can have £326.63 of that tax free.
Here is an annuity calculator:
https://www.retirementline.co.uk/landing/?v=default-fast&keyword=rl-corp&utm_source=SEO+Direct#yourpension

[jackthehat]

Hmmm......just under £3 per month....lol

Thanks, TTT.

[bobbinwales]

If an annuity then depends on age health and whether fixed or RPIlinked...but only going to be around £2 -3 a month. Maybe a drawdown is possible...drawn down maybe £10 a month roughly over 10 years

[ToraToraTora]

09:25, yes that's approximately 3% depending on which options you choose it could be more. Try that when the BR was 0.01 over a year ago and you'd be getting about 50p! As I said though for small amounts you can usually take it all then it's up to you to deal with tax issues that may arise.

[jackthehat]

She had no idea that this even existed and can't decide whether to cash it in, or take it as an annuity; I'll pass on your comments.

Many thanks for your help TTT and b-i-w

[ToraToraTora]

assuming it's flat at £3 per month she'll have to live approx 25 years to eat through the cost of an annuity. If you chose escalating by RPI then a lot less. If that helps, in this case it's such a small amount I'd probably take the dosh up front.