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DH wants to cash in a Royal Mail pension

27 replies

GordonsAFGirl · 16/03/2023 09:21

Posting for advice. DH is royal mail worker who took a tax free lump sum on his 55th birthday. He now wants to access more of that pension towards our house purchase. He is 60 next month.
He has two other royal mail pensions.
When he rang last month the operative told him he couldn't withdraw anymore money out of that pension pot. This doesn't sound right to me as he has a monthly pension from this scheme. He is still in full time work. He knows he will pay tax on any withdrawal.
Any advice, knowledge welcome as he is not very money savvy.

OP posts:
GordonsAFGirl · 18/03/2023 16:40

@testina that is very kind of you.
My husband gets very nervous re money.
I always have to talk to RM. He has an illness that pops up when he becomes anxious. I did read the 2010 thing.
The only bit I remember is the adviser saying the RM works on an average life expectancy of 75 due to the hard graft and paper dust! I hope he lives to 100, that will pee Simon Thompson off.
I don't want him to lose more benefits. We have had a hard time since 2017 but things have been a lot better lately.
Our mortgage has changed four times since November and we have just been threatened with gazumping. We are a few weeks away from completing on our new home. Just trying to make the numbers add up.

OP posts:
ChessieFL · 18/03/2023 16:55

If it’s a defined benefit scheme you’re unlikely to be able to just take the lump sum - usually you have to take all the benefits so you would have to take the (possibly reduced) annual pension as well in order to get the lump sum. As Testina says please speak to the scheme administrators and ensure you’re clear what you’re agreeing to before you do anything.

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