Has anyone did this? Age 55

[calsae]

If you manage without, why not wait until NRA? You'd get a bigger pension and bigger lump sum. This will help inflation proof your income more, than if it's reduced.

The figures are so small in the grand scheme of things and with no intention of retiring early now because of the P/T job, I was thinking the reduced NRA 60 would pay for extra holidays and a couple of cruises from next year on rather than waiting until I’m 60. With all large bills paid already ( mortgage, car , kids universities & marriages) I’m never going to be any better off long term because there is no room for saving in my wage now. I also thought even if you lift your pension, it would still rise with inflation each year?

[heapsy]

Yes it will, but in monetary terms, by a smaller amount. As long as you get your sums right, then it's your decision to make. My concern, with my figures, is will I manage a few years after retirement. The cost of living increases will never be more than 5%. With councils routinely getting away with 5% increases, and recently having 11%+ inflation, I think some might regret their decision to take the hit, due to an almost obsessive belief they going to fall off their perch early. Savings rates are falling, as they did in 2009, so many will take risks, rather than accept mediocre returns.

[skodamanpat]

Just received my forecast to take 60 and 65 benefits at 56. Rough calculations point to taking a cash lump sum, and in doing so the break even point where waiting to nra compared to at 56 is age 78. I suppose it is down to how you envisage spending your time and money and how much you anticipate being able to enjoy that money in your late 70's

[NorthernBoy]

Just received my forecast to take 60 and 65 benefits at 56. Rough calculations point to taking a cash lump sum, and in doing so the break even point where waiting to nra compared to at 56 is age 78. I suppose it is down to how you envisage spending your time and money and how much you anticipate being able to enjoy that money in your late 70's

Yes there is no right or wrong as to when to take your benefits as everyone’s circumstances are different.

Out of interest did you see a 20% reduction on nra60 and 45% on your 65 benefits as compared to your most recent statement? Also how long did it take them to give you your figures from putting your request in. If I was guessing the capita team took longer to reply

[skodamanpat]

2 weeks roughly.

Only had my statement from rmpp so far, it is slightly less than 20% reduction to start taking it at 55 10 months nra60
It does decrease the supplement massively though on nra 65.

Looking at the rmsps and last year's statement does throw up an anomaly in that the nra pension sum doesn't appear to have risen much but the supplement considerably.

Taking the lump sum early seems to be very much a no brainer.

[NorthernBoy]

Thanks for the info.

[Chris19]

Hi, I'm considering taking NRA 65 early by cashing it in. I can access this pension before my NRA 60. To access the DBCBS I have to access all the NRA 65 pension. My current figures are: Pension £2100 PA : Pension Supplement £400 PA: DBCBS £26800. On the RMPP early retirement calculator my DBCBS will be reduced to £23000. So, would my cash in value be, pension £2500 x 20 = £50,000 + £23000 = £73000. 25% tax free £18250. I'm looking at a drawdown option and I don't know tax implications. I'm 56, left RM, in section C. Is this correct? Thanks

[RobertT]

Hi, I'm considering taking NRA 65 early by cashing it in. I can access this pension before my NRA 60. To access the DBCBS I have to access all the NRA 65 pension. My current figures are: Pension £2100 PA : Pension Supplement £400 PA: DBCBS £26800. On the RMPP early retirement calculator my DBCBS will be reduced to £23000. So, would my cash in value be, pension £2500 x 20 = £50,000 + £23000 = £73000. 25% tax free £18250. I'm looking at a drawdown option and I don't know tax implications. I'm 56, left RM, in section C. Is this correct? Thanks

The 20x multiple is only used when working out your lump sum, etc. It's not necessarily relevant for transfer value purposes, as they are worked out as the cost to the scheme of providing your benefits.
So you'll need to get a CETV from the RMPP – see their website for details.

Only RMPP benefits can be transferred to a personal pension for drawdown, so that's your pension 2012-2018 and the DBCBS. Plus any AVC's if you have them.

Once your RMPP benefits have been transferred to your personal pension, you can normally take up to 25% tax free with the remainder being classed as income and taxed under normal PAYE rules. So how much tax you actually pay will depend on how much income you have in any particular financial year and that will include income from your pension aswell as from wages. Basically anything over the Personal Tax Allowance(currently £12,570) is taxed at 20% and anything over £50,270 is at 40%.

*RMSPS benefits up to 2012 can only be transferred to another defined benefit scheme.

[Chris19]

Great, thanks for providing the extra details, it's much appreciated.

[calsae]

Hi, I'm considering taking NRA 65 early by cashing it in. I can access this pension before my NRA 60. To access the DBCBS I have to access all the NRA 65 pension. My current figures are: Pension £2100 PA : Pension Supplement £400 PA: DBCBS £26800. On the RMPP early retirement calculator my DBCBS will be reduced to £23000. So, would my cash in value be, pension £2500 x 20 = £50,000 + £23000 = £73000. 25% tax free £18250. I'm looking at a drawdown option and I don't know tax implications. I'm 56, left RM, in section C. Is this correct? Thanks

I haven’t thought of the above, leaving the NRA 60 to mature at 60 and lift the NRA 65 pension now. I presume this is possible?

[Chris19]

I called RMPP. Wanted to know about accessing only DBCBS early. Told, had to take at the same time as the pension. It can be taken before NRA 60 pension. I'll make sure to get it in writing before making any decision.

[calsae]

I called RMPP. Wanted to know about accessing only DBCBS early. Told, had to take at the same time as the pension. It can be taken before NRA 60 pension. I'll make sure to get it in writing before making any decision.

Thanks Chris, I’ll look into it. Though I still haven’t received this Septembers statement yet so unable to get a decent guide on the pension calculator on RMPP

[RobertT]

It's worth noting that taking your benefits is different to transferring them.

If you're taking your Age65 you have to take the DBCBS aswell, but you can just transfer the DBCBS if you want to.

Also, you'll need IFA approval if any transfer is over £30k which is both difficult to get and expensive.

[Chris19]

That's really good to know. Early next year I'll ask for the CETV. I'll then compare both options. Thanks again.