A quick question

[Wullie10]

An old work mate asked me the other day.
Weekly pension payment £32.72 and Bonus £5.45
What is the annual contributions in a year when employee contributions are included ?

[Jaggs]

An old work mate asked me the other day.
Weekly pension payment £32.72 and Bonus £5.45
What is the annual contributions in a year when employee contributions are included ?

If that is what they are paying in the employer contribution would be £74.16 per week so

(32.72+5.45+74.16)×52=5841.16

[mr hil.]

How much you actually contribute, not including the bonus, does not mean that is what you will receive at retirement. The figures at retirement are based on a percentage of your pensionable pay per year

yearly pension at retirement :- For each year you pay in , this will be:

1/80th
of your pensionable pay in that year, based on you getting it at age 67.
Plus
A one-off lump sum
For each year you pay, this will be:
3/80th
of your pensionable pay in that year, based on you getting it at age 67.

You can boost the lump sum by 1% of your pensionable pay which royal mail will match too.
Your pensionable pay is on your payslip this is the figure that all is based on
The percentages paid into the pension by you and RM merely give the pension trustees funds to invest to be able to supply you with a lifetime pension plus lump sum

On the figures you have provided they will "bank" £354.25 pension and £1062.75 lump sum plus a bonus lump sum of £566.80 this year. these figures will be adjusted each year hopefully at least in line with inflation but see the official website for full details.

If no change in pay (not likely) the same amounts would be added each year until retirement at 67, so if they had 10 years to go they would get an annual pension of £3542.50 per year (nearly£300 per month) and a lump sum of £16,295 ish.

In reality they should get a lot more due to pay rises and the annual adjustments made by the pension trustees. You can go to the pension dashboard to get a personal forecast once logged in

https://rmcollectiveplan.com/

[RobertT]

An old work mate asked me the other day.
Weekly pension payment £32.72 and Bonus £5.45
What is the annual contributions in a year when employee contributions are included ?

If that is what they are paying in the employer contribution would be £74.16 per week so

(32.72+5.45+74.16)×52=5841.16

I thinks it's a bit more than that!
I'm assuming Wullies 'Bonus' is actually the Lump Sum Booster:

Employee - £32.72(6%) + £5.45(1% booster) = £38.17
RM - £72.52(13.3%) + £5.45(1% booster) = £77.97
Plus RM also pay 0.3% towards the cost of ill health benefits = £1.63

So based on the figures provided, Wullies mate is on pensionable pay of £545.33 per week and there's a total of £116.14 going in their pension & lump sum. Which is £6,039.28 per year.

Plus another £1.63 / £84.76 into ill health benefits from RM.
Giving a grand total of £6,124.04 per year.

*The actual cost to the employee is reduced due to the benefit of tax relief and salary sacrifice(PSE).

[Wullie10]

Thanks I'll pass that on , Weatherspoons postie pensioner's corner next week.