Taxation of Pension Lump Sum

[wmgw15]

I would commute below the tax threshold. Any additional amount that is paid in your annual pension will grow handsomely over the years.

Tax free lump sums are granted to save money in the long run.

Thanks for your input nn. There’s certainly plenty to think about and I have just over 18 months left to try and decide on which option to take

[Stressed]

I would commute below the tax threshold. Any additional amount that is paid in your annual pension will grow handsomely over the years.

Tax free lump sums are granted to save money in the long run.

It's all about how much it adds to your monthly pension after tax and how many years it would take you to get back that additional bit of lump sum.
£4k towards a new car when you retire might be worth more to you than £20/month
Good Financial advice and then make a person choice!

[notnarcissus]

It's all about how much it adds to your monthly pension after tax and how many years it would take you to get back that additional bit of lump sum.
£4k towards a new car when you retire might be worth more to you than £20/month
Good Financial advice and then make a person choice!

That £20 doesn't remain £20 over the lifetime of your pension.

[SoCo]

I took the max commutation, have seen people retire and dead within a year. Obviously I'd like to live and enjoy a long life but...

[bill.advanced]

I took the max commutation, have seen people retire and dead within a year. Obviously I'd like to live and enjoy a long life but...

Exactly why there are no rights and wrongs here, it’s all down to personal choice.