How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

With new pension regulations ,can my wife( 60yrs) decide not

This answer was rated:

With new pension regulations ,can my wife( 60yrs) decide not to take his pension lumpsum this year and wait to be 65 when she will retire . If she takes her lpsm she will be taxed at 40 pcnt (2015)but if she takes after retirement age she will pay only 20 pcnt on part of it . please advise / regards

Leave this with me while I draft my answer.
Hi again.

When you refer to "pension lump sum" are you referring to an occupational pension lump sum, a private pension lump sum or a state pension lump sum?
Customer: replied 3 years ago.

private pension lumpsum


I'll get back to you in a bit.
Hi again.

There is nothing to stop your wife deferring her pension regardless of the retirement date she chose when she started the pension plan.

Take a look here for the basic options. If you look here, you will see there is more detail on how the fund can be taken in terms of tax free cash and taxable income. Most private pensions funds allow for 25% to be taken as tax free cash so that would never be taxed at 20%, let alone 40%.

Your wife would need to consult her pension plan provider or an independent financial adviser to find out in detail what her plan will offer as far as the new rules which come into effect on 6 April 2015 are concerned as the options vary from plan to plan.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you