applying for pension

Post by **RobertT** » 24 Mar 2015, 19:07

roma12345 wrote:I left Royal Mail in 2008 and when I reached 55 I took my 25% lump sum.

As far as I know you have to take your pension at the same time as the lump sum in the RM pension scheme, so you presumably receive that monthly pension aswell? Leaving the 75% invested can be done with a defined contribution scheme however.

I intend to withdraw the rest under the new pension rules that come into force this April.

Those rules only apply to defined contribution pension schemes, you will be the RM final salary scheme, probably either section B or C depending on when you started the job, which is a defined benefit scheme. Also as the RM pension is now largely funded by the government, transfers out under the new pension rules aren’t allowed anyway.

Is this taxable? It is only a small amount less than £20000.

It would be taxable if it were possible to take it.

arnold cheshire · Post by **arnold cheshire** » 28 Mar 2015, 17:52

jhono wrote:well today I sent off to apply for my pension ,am 55 in march and have decided to apply now ,only had 6 years service but this equates to a pension of £1880 per annum ,obviously I am hoping this falls into the small pot category and I can take it all, some guidance seems to indicate this may be so .I already have an mod pension to pick up at 60 so thought I would have this 1 now ,fingers crossed ,I will update to let people know how it turns out ,ie facts and figures

wouldnt that be 50percent less with 6 years service surely thats NRA 65?

john gould · Post by **john gould** » 21 May 2015, 22:51

hi all will I pay tax on my lump sum if I take It early at 55?

Post by **baldrick** » 21 May 2015, 22:56

john gould wrote:hi all will I pay tax on my lump sum if I take It early at 55?

If you take your pension and lump sum at 55 it will be reduced by 25% (5% for every year you take it before 60), but you don't pay tax on pension lump sum.

john gould · Post by **john gould** » 22 May 2015, 09:38

thanks baldrick, I was told that you pay 40% on anything over £30.000 will phone the pension office to clarify.

john gould · Post by **john gould** » 22 May 2015, 10:59

spoke to girl at pensions office, and will not have to pay tax on lump sum so that pretty much made my mind up, I'm having it. as my old dad used to say you're a long time dead good luck to you all.

carollaw · Post by **carollaw** » 10 Dec 2018, 10:25

Apologies for jumping on this post but I can't seem to start a new thread. I left Royal Mail in 1992 and my pension was deferred. I have just had my options and my surviving spouse has a figure of about 25% of my yearly pension. This seems very low - lots of talk on here about 50% and certainly another pension I have coming out now that I am 60 is quoting around 50%. Can't really find anything on the pension website. Can anyone advise please? Since Capita took over I am a little concerned about the advice/unable to get through to them etc. Have had to chase my options forms twice already and now concerned about rushing into signing anything. Many thanks.

Post by **TrueBlueTerrier** » 10 Dec 2018, 12:52

carollaw wrote:Apologies for jumping on this post but I can't seem to start a new thread.

Its the New Topic button on each sections header page - https://www.royalmailchat.co.uk/communi ... =post&f=27" onclick="window.open(this.href);return false; < this link should also start a new topic.

On the pension stuff, I am afraid I am a dunce when it comes to that so I'll leave to our pension wizards.

Post by **RobertT** » 10 Dec 2018, 16:07

carollaw wrote:Apologies for jumping on this post but I can't seem to start a new thread. I left Royal Mail in 1992 and my pension was deferred. I have just had my options and my surviving spouse has a figure of about 25% of my yearly pension. This seems very low - lots of talk on here about 50% and certainly another pension I have coming out now that I am 60 is quoting around 50%. Can't really find anything on the pension website. Can anyone advise please? Since Capita took over I am a little concerned about the advice/unable to get through to them etc. Have had to chase my options forms twice already and now concerned about rushing into signing anything. Many thanks.

I believe the 50% spouses pension relates to deferred members who haven't taken any of their pension benefits. It goes down after you've taken them! Although what is paid out also depends on which section you're in.

There's some info( but no specifics) on the Life Events / After You Die page on the pensions website.

There's also a small mention on page 14 of the plan guide.

ROYALMAILCHAT