Severance Payment

Glenealyman

I have been offered an early severance package under the SCSB scheme. There are two options.
(1) The package minus tax
(2) Waive my right to a tax free pension lump sum and take a bigger tax free payment now.

My question is this. If I take the waiver option, does that mean I get a lump sum at retirement age and pay tax on it or I get no lump sum at all?
I have been given a value of my pension fund to date. Will that value be affected if I take the waiver option?

I will have to wait 28 years to get any benefit from this pension fund.

Advice please.

dogsears

No lump sum at all.

And these options are difficult and could go either way, so you need a bit of professional advice where you can give the real numbers etc.

maximum12

Of course 28 years from now the law around tax free lump sums may have changed.

There would need to be a large incentive for me to defer the potential benefit for 28 years

Glenealyman

Yes, Maximum12 I am thinking the same way.