Underwhelming RMSPS Pension illustration.

[RobertT]

OK thanks for all of your interesting responses, however to get back on topic, was anyone else left underwhelmed with their "figures quoted", just like I was ?

Many thanks.

Personally I haven't had either of my statements, but I know more or less what they're going to say.
The only element that will have seen any real change from last year will be the Cash Balance.

[guardianangel]

OK thanks for all of your interesting responses, however to get back on topic, was anyone else left underwhelmed with their "figures quoted", just like I was ?

Many thanks.

Yes me thats why i pointed out if i was starting out now i wouldn't bother,but that is only my opinion,there is no right or wrong in life just enjoy the little time we have here,in years to come unless your in the top 5% of earners or come into money early ,retirement on a pension will be a thing of the past .

[guardianangel]

All fine and dandy, until those "decades to come" become the here and now, though you'll have plenty of time to ponder on how and why you willingly gave up all that free money from RM.

That's if you get there,life is a gamble.

[guardianangel]

If i was just starting work now id be opting out of the company pension scheme it will leave you on the breadline in retirement ,that's if you retire at all .

What’s the alternative please?

Dont pay into one spend the money on yourself ,if you get to 55 hopefully with that money saved you could pay off your mortgage early maybe go part time to retirement age which could rise again in the next 40 years,lets be honest its never going down again,maybe sell your house travel the world ,so many options and if you get to retirement the state will look after you,i have family who have never worked and will not be much worse off than me in retirement with all their added extras than me with a pityful royal mail pension,there is always choices but dont let people brainwash you into the same old life cycle.

[guardianangel]

You do realise when the government brought in that every company must offer a pension scheme they were thinking long term

Yes, they were encouraging everyone(and their employers) to fund a decent chunk of their pension provision themselves, instead of it being paid for by the state.

its only a matter of time before they change the rules again ,watch this space

Rules will always change, and it's usually to the detriment of the normal man/woman.
I think the thing to do, is put yourself in a position so those changes don't affect you too much.

with the retirement age going up so does your works pensions age

Some company pensions are directly linked to state pension age, but not all. From 2028 it won't be possible to access any pension more than 10 years before SPA. Unless for health reasons.
But there's more to retirement savings than just pensions!

and with life expectancy falling and the government relieving you of your hard earned money for care and no pension credits as you pointed out is it really worth it for maybe the last ten years of your life

Who says it has to be for the last 10 years of life?
My pension savings are helping me to retire early!
Based on averages, I've still got the best part of 30 years until I pop my clogs.

Only my opinion but as i said if i was just starting out now i'd enjoy my life to the full while im young and healthy and let the state look after me when im old,i'll be quite happy sat in my garden drinking tea and biscuits knowing i gave them nothing and had a bloody good life,LIVE FOR TODAY AS TOMORROW MAY NOT BE YOURS,people tend to spend all their life what may or may not happen in decades to come.

Personally I think a more balanced approach is best.
I don't really see the point in having it all when you're young, to the detriment of when you're older.
Wealth, health, etc should be shared equally throughout your life, as much as possible.
Sooner or later, tomorrow always becomes today!

I certainly wouldn't want to be relying on the state, when the ratio of older to younger people is increasing. Realistically all their going to give me is the bare minimum.

Each to their own!

Exactly each to their,on my royal mail pension with the figures my best hope is to work part time until retirement and when i retire ill miss out on all the benefits with just a small pension added to my old age pension,as i said if i were to do it all again i wouldn't bother but thats only my opinion ,everyone has a different outlook in life.

[Tman]

All fine and dandy, until those "decades to come" become the here and now, though you'll have plenty of time to ponder on how and why you willingly gave up all that free money from RM.

That's if you get there,life is a gamble.

If you don't reach retirement age, you won't need to worry about your company pension, and if you do, you'll regret making such a dumb decision.

[guardianangel]

All fine and dandy, until those "decades to come" become the here and now, though you'll have plenty of time to ponder on how and why you willingly gave up all that free money from RM.

That's if you get there,life is a gamble.

If you don't reach retirement age, you won't need to worry about your company pension, and if you do, you'll regret making such a dumb decision.

In your opinion i have a more optimistic look on life ,i always look forward not back and never live with regrets

[yellowbelly]

................and if you get to retirement the state will look after you,............

Folk will be forced to accept what (if anything) the state/local authority offers you when the time comes. An additional pension (however funded)
or savings gives you more options/choices, I wouldn't want to rely on the state of any political persuasion for anything in 10/15/20 years time.

[Wullie10]

Long term the state pension is unaffordable but no government wanting to stay in power wil be willing cut it or get rid it. So all they can do is print more money which will mean very high inflation. So yes , you'll get a state pension but unless the triple lock remains ( unlikely as it is now ) it'll eventually be not worth very much at all. Only a private,/firm pension will save you. When I was early 20s a postman similar age sadly died of cancer. I'm 60 now , had I decided to stop paying into the pension then. Lives to short etc I'd be at my wits end now. To give "" advice "" (?) To someone not pay into a pension so they can afford an extra pint of beer in the pub every week is frankly irresponsible and quite bizarre.

[guardianangel]

Long term the state pension is unaffordable but no government wanting to stay in power wil be willing cut it or get rid it. So all they can do is print more money which will mean very high inflation. So yes , you'll get a state pension but unless the triple lock remains ( unlikely as it is now ) it'll eventually be not worth very much at all. Only a private,/firm pension will save you. When I was early 20s a postman similar age sadly died of cancer. I'm 60 now , had I decided to stop paying into the pension then. Lives to short etc I'd be at my wits end now. To give "" advice "" (?) To someone not pay into a pension so they can afford an extra pint of beer in the pub every week is frankly irresponsible and quite bizarre.

I never gave advice i said if i was starting out again i wouldn't bother with a personal pension,it was my opinion,the pensions were good if you stayed in the same job for 40 years but theses days the average person will have 12 jobs in their working lives so company pensions are not a great investment transferring these pensions would be investment suicide and freezing them makes little sense,so i stand by my opinion not advice as you put it ,please please read the situation before you go off on one.

[RobertT]

I never gave advice i said if i was starting out again i wouldn't bother with a personal pension,it was my opinion,the pensions were good if you stayed in the same job for 40 years but theses days the average person will have 12 jobs in their working lives so company pensions are not a great investment transferring these pensions would be investment suicide and freezing them makes little sense,so i stand by my opinion not advice as you put it ,please please read the situation before you go off on one.

With every pension, you'll get the benefit of tax relief and sometimes salary sacrifice, aswell as at least the legal minimum of a 3% contribution from your employer. Over the course of your working life, that can add up to a significant amount of money.

There's no such thing as freezing a pension! Once you've left an employer, DB schemes will increase with inflation and DC schemes will continue to follow the chosen investments.

Transferring a DB scheme to DC is generally regarded as a wrong decision, but DC to DC is perfectly normal. I don't know why anyone would consider it to be investment suicide, as you'll normally be able to transfer to broadly similar investments, if you want to!

[Wullie10]

Each to their own but I never have or will receive an inheritance. I saved into the pension scheme and more. Now I'm 60 I have total freedom . The illustration they send might seem underwhelming, but surely that means you should be looking to increase contributions. You'll be 60 in a blink of an eye , as for stopping payments because it doesn't seem much is nuts.

[milly]

Wait until next year's Pension statement, it will be even worse.
We are are being robbed by the Parasitic classes, the Government Gilts our Pension buys are used to fund many Government workers Final Salary Pensions and Shirkers benefits.
I have had a few people on here trying to ridicule me, but it looks like the penny is finally beginning to drop.
As interest rates go higher the value of Government Gilts will continue to drop.

[RobertT]

Each to their own but I never have or will receive an inheritance. I saved into the pension scheme and more. Now I'm 60 I have total freedom . The illustration they send might seem underwhelming, but surely that means you should be looking to increase contributions. You'll be 60 in a blink of an eye , as for stopping payments because it doesn't seem much is nuts.

I fully agree with that.
I read far too often, people moaning about what their pension is worth and how hard the statements are to understand. And it's fair to say neither are the best.

But not many seem capable of grasping the nettle, educating themselves a little and doing something to improve their situation.

Increasing contributions by even a small amount can make a big difference, especially if you start early enough and stick with it.
At least you'll have some control over your own destiny.

Relying on the state and the whims of whoever is in power, is foolhardy in my opinion.

[RobertT]

Wait until next year's Pension statement, it will be even worse.
We are are being robbed by the Parasitic classes, the Government Gilts our Pension buys are used to fund many Government workers Final Salary Pensions and Shirkers benefits.
I have had a few people on here trying to ridicule me, but it looks like the penny is finally beginning to drop.
As interest rates go higher the value of Government Gilts will continue to drop.

I wondered when you'd pop up. Lol.

Higher gilt yields have actually been good for DB schemes and bad for DC. If you chose not to believe that, then that's up to you.
https://www.pensions-expert.com/Special ... ns?ct=true

Rather than the statements, what you need to look out for is the annual report and accounts, as they will tell you the overall state of the RMPP.

If what you say is correct, and the scheme is dropping in value due to high yields, it'll likely be in deficit.
But I doubt that will be the case.