FSA Pension calculator query: what is the lump sum?
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Written on: 03.11.2009 [16:35]
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Bacary
Bacary
Topic creator
Posts: 2
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I was using the FSA pension calculator online and one of the questions asks if I want to “take the maximum lump sum allowed of 25%” What is this? Is it better to take a lump sum or not as it asks me for yes or no, but I don’t understand what it is? |
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Written on: 09.11.2009 [09:28]
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Sylvain
Sylvain
Posts: 5
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When you retire you can take up to 25% of your pension as a tax free lump-sum. It depends which way figures out best for you. I found that it was best to keep my money in the pension so that I could add the money to my regular income as I don’t have to pay tax on my retirement income. However I think for those who do have to pay tax on their retirement income it is beneficial to take as much as you can (25%) as you do not have to pay tax on this. |
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