The key to making the most of your commutation lump sum is planning. It's a good idea to start by working out what commitments you already have and any large expenses you anticipate in the future.
Our Commutation Planner will help you to see how much you'll need to put by to achieve your plans and how much you'll have to invest for your future. Need to know how much your commutation could be? Use our Commutation Calculator
Plan your commutation
Consider your circumstances, lifestyle and spending habits to ensure you have a sum instantly available in case of emergencies.
As an example, the Industry standards for calculating and emergency fund is generally between 3 to 6 times monthly expenditure.
One of the things you might want to do is reduce your monthly outgoings by paying off some, or all of your debts with your retirement funds or savings
Unsure if paying off your debts the right thing to do? click here for more information.
Time to treat yourself
Are you planning to help your family members onto the property ladder or contribute to wedding expenses?
Consider any expenses you may encounter in the next 5 years where you may need to access some of your funds. For example, school or university fees, cost of long term care for elderly relatives etc
Extra time on your hands to do something you’ve always wanted to, whether that be a new hobby or new venture