A personal pension question.

[Dave7]

Aged 75 I have just been advised that I am due a pension I had no idea I had.
They are sending me a lump sum of approx £15K, less tax (very acceptable).........BUT.......... .
The annual pension will be £1800.
So.......if my retirement age was 65.......why is the L/S not £18K ?

Before you say it.... I don't want to phone and rock the boat.
EDIT
I paid a professional pensions guy to check everything was legit.

 

[fossyant]

New leccy bike then ? No idea why it's not more. You should get some calculations sent through, which you can query.

 

[bikingdad90]

I believe it’s something to do with the 55% cap and the interaction with the lifetime allowance for earnings before the pension annual charge kicks in. It’s a minefield when it comes to pensions so I would let your pension guys explain it to you.

 

[Dave7]

Good news is the first 50% l/s has been paid in and as soon as Mr taxman calculates things I will get the other half.

 

[PK99]

Aged 75 I have just been advised that I am due a pension I had no idea I had.
They are sending me a lump sum of approx £15K, less tax (very acceptable).........BUT.......... .
The annual pension will be £1800.
So.......if my retirement age was 65.......why is the L/S not £18K ?

Before you say it.... I don't want to phone and rock the boat.
EDIT
I paid a professional pensions guy to check everything was legit.

Assuming that the Pension is linked in some way to Inflation and not fixed, it would not have been £1,800 at the start. So the missed payments are not 10 x current annual pension

I'm guessing then, that the £15k is the sum of the actual missed payments with some adjustment to take account of lost utility.