Lump Sum Retirement Benefit
Did you know?
- Lump Sum Retirement Benefit is closed to new applications
- Launched in 1982
- Over 300,000 members
A one-off payment when you’re 65
It’s not possible to join any more. We closed to new members in 2001. But if your employer set this up for you in years gone by, it’s a handy part of any pension portfolio.
How it worked
It ran from 1982 to 2001, where employers contributed through the stamping of holiday cards towards a lump sum payment at 65 years of age. There was also the option to make ‘additional voluntary contributions’ (AVCs) to build up extra benefits.
What you can do
If you have Lump Sum Retirement Benefit you’ll get a 100% tax-free lump sum payment when you’re 65.
Alternatively, if you’re interested in other ways to access your retirement savings, you could transfer to another pension scheme or provider – such as The People’s Pension. Please note The People’s Pension doesn’t offer an option to take a 100% tax-free lump sum. Instead there are a range of options to take your money and provide you with a retirement income.
While small pot lump sums (up to £10,000) are an option with The People’s Pension, this option may be restricted in the first 5 years following the transfer. This is because of rules imposed by HM Revenue & Customs.
To find out more about your Lump Sum Retirement Benefit and how to request to take it, get in touch with us by completing our short form on our contact us webpage.
Benefits
- Quids in – a tax-free lump sum payment on your 65th birthday
- 65th birthday present – you’re paid on your big day, or from age 60 at a lower amount
- Incapacity – potential for early payment in exceptional circumstances
- Alternatives – you may be able to transfer to another provider to enjoy other retirement options
What are your retirement choices?
You could be retired for 20 years or more, so managing your money effectively during that time is really important.
