I have an old company pension and have decided to take a lump sum next year (while I'm still young enough to enjoy it) and was wondering if anyone knows roughly how long the process takes. I am hoping to have the funds by the end of next year.
2007-11-12 21:50:25 · 2 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
First you have to be over 50 already (if not, then to cash in early after 2010 you have to be over 55) ..
.. assuming 'yes' then to get your lump sum you are effectively Retiring Early (up to 15 years early) .. this will reduce the payout by over 60% (compare to what you would have got if you waited until 65) ...
If it's a Final Salary Scheme, get proper financial advise.
If that's all OK, then you write to the Pension Trustees informing them of your decision .. they will usually forward the paper-work withing 4 to 6 weeks.
It will say how much lump sum and what reduced Pension you will get.
Look very carefully at the 'open market option' (this allows you to buy your Annuity from an Insurance Company etc and may pay better than the company pension scheme).
Usually you have 30 days to respond (after which the figures will have to be re-done) .. if you decide to go ahead they should send you the 25% lump sum and start paying your Pension within another 4-6 weeks.
2007-11-13 18:40:05 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
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2015-02-11 08:23:28 · answer #2 · answered by Marti 1 · 0⤊ 0⤋