Mike Freer, of BWCI, replies:
I’M not surprised you have quotes with both 25% and 30% lump sums.
In Jersey the maximum tax-free lump sum at retirement is 30% of the value of the pension. It increased from 25% a few years ago.
However, not all Jersey schemes will have updated their rules to allow this and so some may well still be limited to 25%.
The position is different for a UK scheme. Here the maximum lump sum is 25%. Therefore, assuming that the quote with a 30% lump sum is a Jersey pension arrangement, it is likely to be correct.
However, just a word of caution.
Although taking the maximum lump sum is very appealing and flexible, do remember that it will reduce your retirement income considerably so make sure that you will have enough to live on comfortably in retirement, before funding your children’s property purchases.
