Pension Question

PARlance · 2011-10-26 20:33:56

Hi, a friends mother, widow, has been told that her former husbands pension has now matured. She has been told that she can receive a lump sum of 125k or 6k per year. My question, is the 125k going to be subject to tax, and if so, at what rate? She has no other source of income bar her widows pension Any advice appreciated

26-10-2011 09:33PM

#1

PARlance

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Hi, a friends mother, widow, has been told that her former husbands pension has now matured.

She has been told that she can receive a lump sum of 125k or 6k per year.

My question, is the 125k going to be subject to tax, and if so, at what rate?

She has no other source of income bar her widows pension

Any advice appreciated

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#2 27-10-2011 09:25PM

broker2008

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Usually it is a tax free lump sum. Sounds like it was a company pension scheme rather than personal pension.

Are you sure it isn't 125k tax free and say 4k per year or no lump sum and 6k per year.

If it is not too late go get advice. Some of Aviva's pensions ex Norwich Union have guaranteed annuity rates of upto 12%.

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