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CONVERTING PENSION FOR A LUMP SUM
You must choose to convert some of your annual pension to give yourself a tax-free lump sum, in writing, before your benefits are paid.
So that you have plenty of time to make up your mind and seek financial advice if you wish, it is important you contact your employer well in advance of your intended retirement date so you can be provided with an estimate of these amounts.
Estimates are an important tool in planning for your retirement. They can be used to decide whether to retire or not, to make financial arrangements for retirement and make informed decisions when given important options.
When converting annual pension to lump sum there are three key elements that have to be considered:
