mac12:
I opted out of serps into a private pension in 1990 with only their bit going in I just cashed it in this month £23000 16500 ish after tax and that will reduce as with that I will be on the 40% tax band for a month or two towards end of year. But still worth more to me now than about 500 a year at 65. The new pensions are a better deal with contributions from both which in about 6 0r 7 years has accrued about 50% what the other did in 31
Do you know how much money went into your pension and how old are you now and how many years have you until retirement age
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I was 24 in 1990 and 55 now and it was due to pay out from 65 if you have been in employment the whole time yours will probably be a bit higher than my 23k as I had about 10 years of self employment. When you pull it out 25% is tax free and the pension people deduct the income tax from the rest but be warned some will deduct 40% and you will need to deal with HMRC for the rebate at the end of the year. Mine didn’t but I will hit the 40% tax band for the last month or so of this financial year. Some will also allow you to take half now and half later so you can split into two financial years. But take some professional advice tho mate I’m just going by my experience of drawing mine mate. It is a simple process tho