Pension questions and problems! Advice greatly appreciated!

[Just_My_Opinion]

Hello all and thanks for reading.

Been a postie for about 10 years. Approx 3 years as a part time temp and 7 years as full time permanent.

Think I have paid into the pension one way or another over those 10 years.

Now pensions confuse me immensely.

Been talking to guys in work regarding pensions.

I am 29 and have at least another 30+ years to work.

Will my pension be worth anything if I continue you to pay into it the next 30 years? What shape will Royal Mail be in another 25-30 years? Bankrupt?

I am quite lucky in one sense that I have 2 uncles, one will be leaving me his house and the other will be leaving me half his house.

A lot of people have advised me this is as good a pension as any.

Any thoughts or advice greatly appreciated.

[RobertT]

Will my pension be worth anything if I continue you to pay into it the next 30 years?

Yes it will. Assuming the current career average scheme continues in it's current form you will have 30+ years of contributions plus some final salary from before 2008. Even if you leave RM, your pension will still be there to provide an income in your retirement.

What shape will Royal Mail be in another 25-30 years? Bankrupt?

Only time will tell.

I am quite lucky in one sense that I have 2 uncles, one will be leaving me his house and the other will be leaving me half his house.

That's assuming they don't marry, don't have kids, decide to leave their property to somebody else or live to a ripe old age and have to sell their homes to pay for residential care.

A lot of people have advised me this is as good a pension as any.

People do say that their home is their pension but that only really applies if you have a big house and can downsize. Equity release will be an option for some but isn't a very good financial decision especially if do it while you're relatively young.

[easter bunny]

From what I understand Robert , the Government are only putting the existing Pension Pot onto their books at it stands now, not any future payments...

Therefore any new owners coming in could turn around and refuse to pay any futher payments into the scheme as it stands now....

Think I have that right....Cant see much chance of Privatization being blocked in Westminster because of the size of the majority on the Government benches... It remains to be seen who actually wants to buy the business as a whole unless the Public are offered shares which could be an option if the asset stripers rule themselves out...

[RobertT]

From what I understand Robert , the Government are only putting the existing Pension Pot onto their books at it stands now, not any future payments...

Correct.

Therefore any new owners coming in could turn around and refuse to pay any futher payments into the scheme as it stands now....

Correct but from 2012 will have to provide a pension of some sort.

We can only really base things on how they are now as we don't know what the future holds. Personally I think the current career average scheme will go at some point and be replaced by a less generous defined contribution plan.

[easter bunny]

Thanks Robert...I think that will be a battle ahead with the new owners if the workforce are up to the battle..Think you will be right regarding the Career average Pension...

The future Pension will be the one announced by the Government to start in 2012 which is 4% rather than 6% and only 3% employer based...There is a opt out though...

The new owners will certainly in my opinion will be looking at the current pension....

[baldrick]

I am quite lucky in one sense that I have 2 uncles, one will be leaving me his house and the other will be leaving me half his house.

That's assuming they don't marry, don't have kids, decide to leave their property to somebody else or live to a ripe old age and have to sell their homes to pay for residential care.

And they actually get round to making a valid will making clear their wishes. A lot of people (about two-thirds apparently) don't.
You should watch 'Heir Hunters' on BBC1 at 9.15 every morning to see some of the problems caused by people not making wills.
The CWU does do a free Will Service for members. For anyone who hasn't made a Will, it's a good idea to use this.
You ring the CWU Legal Department (0208 971 7444) and they will send you a Will pack which you fill in and send to the CWU Solicitors, Simpson Millar LLP. They will draft the Will and send it to you for signing (with 2 witnesses). You then return it to them, and they will hold it for you, and send you a copy.
I would recommend this to anyone who hasn't made a Will. Most of us don't like thinking about our death, but we don't usually know
when this is going to happen and could be run over tomorrow. Having a Will could save your next of kin a lot of hassle and expense.