Pension questions public and private pension

fergald

Hi,

I am trying to put some figures together to understand my pension potential.

I have 180,000 in a private pension from two companies I worked for.

I now work in the public sector and at 65 I will have 23 years service done and according to the pension modeller I will receive roughly 60k in a lump sum and 12k + public pension.

Now some questions

Is the first 200k tax free on this.

The other 40k I think I can take this as a lump sum and pay 20% on this or is there a more tax efficient use for this.

Also thinking about AVC at the moment,. Where I can increase my monthly/weekly payments.

Also is this 200k for individual or married.

Any help much appreciated.

The J Stands for Jay

You'll need to find out how much of a lump sum you can get from your earlier employments. It can either be calculated as 25% of the fund, or can be based on you salary and how long you worked there.

Whatever lump sum you get from all your pensions, first 200k is tax free, next 300k is taxed at 20% and the rest is taxed as income under PAYE.

AndrewJRenko

If you “retire early” from your other employment, you can recycle money from your old fund into new avcs to maximise tax relief. Get professional advice on this.