In Reply to: Re: Article in Sunday Times (20/11/05) posted by GrumpyGuts on 24 November 2005 at 13:20:19:
: ............. for the sake of completeness - single life was of course more than the above rates.
: GG Two points for consideration if at least part of a lump sum is taken with a view to providing an alternative income source and the retiree has a spouse. If the spouse pays tax at a lower level than the retiree then the lump sum may be invested in the name of the (trusted) spouse, thereby giving some tax relief in aggregate.
Also, taking the (hopefully) long term view, should the retiree pre-decease the spouse this income from the lump sum will continue to supplement the 50% spouse pension. The spouse pension is based on the retiree pension before any reduction for lump sum payments, and is therefore always the same regardless of whether or not there has been a lump sum payment.