retirement package: should I waive lump sum

DeskStapler

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employer is offering early retirement package, will gross out at around 2 years salary equivalent.

I'm 61, should I waive the right to a lump sum to reduce tax on the package?
 
should I waive the right to a lump sum to reduce tax on the package?

More information is required to provide a useful answer to you.

We'd need to know what your lump sum entitlements are under the salary and service option and the ARF option.

It would be silly to waive a lump sum calculated under the salary and service option only to find that the 'real' value of your lump sum under the 25% entitlement under the ARF option is far larger and this has now been foregone.

There is a rinky dink (apparently) where you could waive the right to a lump sum to get more tax free cash now and thereafter transfer your occupational scheme benefits to a PRSA and exercise an unencumbered right to the 25% tax free lump sum under the PRSA policy. More info here:


More details would need to be forthcoming to determine what the best approach would be and whether the above manoeuvre is possible or not.
 
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