Readers' forum : Pension plan

I am 50 at the end of this year and was lucky enough to be in a defined benefit scheme which pays an unreduced pension at 50 should I be made redundant which I was a few months ago.

I have individual protection 2016 at around £1.1m. My accrued benefits are now £1.2m; hence there will be a small ‘extra’ tax bill as I begin to take the pension at the end this year.

However I have a cash equivalent transfer value (CETV) of about £2.7m so I am considering a transfer (and will be taking financial advice) but I cannot touch this money until I am 55.

How is the CETV (and any accumulated added value over the next five years) treated when I start drawing a pension at 55?

Hopefully readers can help with this.

Query 19 056– Premature Pensioner.

Reply by Charlotte...