I applied for a lump sum of my pension in May. When can I expect payment?

06 September 2021

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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

Hi Jeff

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.

Best regards

James

Answered by

James Greenly

Chartered Financial Planner

I am a Chartered Financial Planner at Capital Asset Management, a boutique financial planning and wealth management firm based in the City of London.