I applied for a lump sum of my pension in May. When can I expect payment?
06 September 2021
Question by Jeff
I applied for a lump sum of my pension in May. Filled in all forms and sent off. My 55th birthday was in August. Still haven't received any payment to date. When can I expect ?
Answered by James Greenly
It is difficult to say without knowing which pension provider you are with and the details of the pension scheme.
I would think though that even if you completed the forms in May, they would have been unable to begin processing the withdrawal until you turned 55 last month.
There are a number of things that a pension provider has to do in order to pay out tax free cash, and it will be different depending on what type of pension you have, for example a 'defined contribution' (you have a fund value that can go up and down), and 'defined contribution' (your ex-employer will pay you an annual pension directly).
It is not uncommon for these requests to take several weeks to process, and then another 2 or 3 weeks for the cash to be physically paid out.
I would suggest giving them a call and asking for an update. They should be able to let you know roughly when you can expect the money to reach your bank account.