The financial advice I received when I first took my pension in the 90’s was to commute the maximum allowable as it was more cost advantageous to take the tax free lump sum and re-invest it. My wife is about to retire from the Health Service and in broad figures could take an extra £36,000 for a loss in pension of £3,000 per annum.
Our circumstances are such that we have no current need for an extra lump sum and would have to find some form of investment. In today’s financial climate and with an NHS pension being index linked, I am inclined to believe we could be best served by not commuting the pension.
Any comments, and suggestions as to where to invest if the advice is to commute, would be greatly appreciated.
Our circumstances are such that we have no current need for an extra lump sum and would have to find some form of investment. In today’s financial climate and with an NHS pension being index linked, I am inclined to believe we could be best served by not commuting the pension.
Any comments, and suggestions as to where to invest if the advice is to commute, would be greatly appreciated.