Follow this topicFollow this topic Q&A » Retirement

I will be made redundant at the age of 63 if I take my company pension and retire will this affect my redundancy?

assabb
by assabb 02 February 2010  |  Comments 4 comments  |  Love Love  0 loves

Report

Enjoyed this? Show it some love

Twitter
General

Comments (4)

  • SoftwareBear
    Love rating 216
    SoftwareBear posted

    I'd imagine being made redundant and then taking your pension might be a better way to go ... unless you lose the pension or the redundancy payment is minimal as to make it pointless.

    Check how the redundancy will affect your pension.

    Posted on 02 February 2010 | Love Love  2 loves Report
  • manzanilla
    Love rating 426
    manzanilla posted

    yes. You will not be able to claim redundancy if you have already retired. If you will get a good redundancy lump sum, then hang on for it! But many companies scale back generous redundancy payments if people are very close to retirement.

    Or did you mean it the other way round - will being made redundant affect my company pension? No it won't. And if you don't need the redundancy pay out and it is more than the tax free 30k, then you could consider getting it paid into your company pension.

    manzanilla

    Posted on 02 February 2010 | Love Love  2 loves Report
  • MikeGG1
    Love rating 909
    MikeGG1 posted

    Ususally, the best advice is to take the redundancy, tip the excess over £30,000 pay-off, if there is one, into the pension scheme and then take early retirement. That is the most tax efficient.

    You had better check if that is possible, especially if you are in a final salary pension scheme because the trustees have to agree to the retirement. 

    Mike

    Posted on 02 February 2010 | Love Love  1 love Report
  • SmudgeButt
    Love rating 83
    SmudgeButt posted

    Talk to both your HR person in charge of redundancy and the pension dept. They might come up with different answers.  And whatever you get told and are going to rely on get it in writing.

    Generally I'd say - be made redundant and then take the pension. Some companies will be generous and might say that, assuming normal retirement age for your company is 65, that you can take the redundancy and immediate retirement without a reduction. This would let you boost your pension with a lump from your payout and retire on the full pension as if you were 65.

    Posted on 02 February 2010 | Love Love  2 loves Report

Post an answer

Sign in or register to post an answer.

Something you're dying to ask... or answer?

Register with lovemoney.com to start asking and answering questions on Q&A.

Get started now

Sign in for a better Q&A

Registered already? Great! You can just sign in to ask and answer questions.

Sign in
W3C  Thank you for using Three Kings