Lisa Webster explores waiving the right to tax-free cash at retirement and says it is by no means an easy decision
In defined benefit schemes, opting to forego the tax-free cash wouldn't be considered unusual if it meant a higher income payable for life. This has been the case for many years, and whether it's good value will depend on several factors, including the commutation factor and life expectancy. Since the lifetime allowance was abolished and replaced by the lump sum allowance (LSA) and the lump sum and death benefit allowance (LSDBA), there has been an increase in the number of defined contribution pension members who wish to designate benefits to drawdown only, thereby foregoing the right ...
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