HI, IM 60 IN JUNE AND HAVE RECEIVED A PENSION PLAN LETTER GIVING A LOT OF OPTIONS WHICH IM HAVING DIFFICULTY FOLLOWING TO BE HONEST. I WANT TO TAKE ALL OF MY BENEFITS NOW AS IM NOT SURE KEEPING THEM IN THE PENSION PLAN WOULD BE BENEFICIAL TO ME AS THERE ARE TOO MANY CHANGES NOW.
DO YOU PAY TAX AND NI ON THE LUMP SUM OR JUST ON THE PENSION BENEFITS. IM PLANNING TO KEEP ON WITH ROYAL MAIL UNTIL I CAN LOOK FOR ALTERNATIVE EMPLOYMENT SO AT LEAST WILL STILL GET A WAGE.
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (Updated 2021)... HERE
ANNOUNCEMENT : PLEASE BE AWARE WE ARE NOT ON FACEBOOK AT ALL!
PENSION HELP PLEASE
-
POSTMAN
- SITE ADMINISTRATOR
- Posts: 32587
- Joined: 07 Aug 2006, 03:19
- Gender: Male
Re: PENSION HELP PLEASE
Are you still staying in the job because for ever year you take your pension early (in your case 5 years) you LOSE a percent,i think it's 5%.
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
-
baldrick
- EX ROYAL MAIL
- Posts: 5028
- Joined: 13 Sep 2007, 23:37
- Gender: Male
Re: PENSION HELP PLEASE
You will be able to take the benefits accrued until 31 March 2010 (NRA 60 Benefits) without any reduction when you reach 60.
If you want to take all your benefits, the pension accrued after 31 March 2010 (NRA 65 Benefits), will be actuarially reduced by 5% pa,
so you would lose about 25%, I think.
If you are a CWU member, you can ask your CWU Branch Secretary if your Branch has a Rep who can explain the terms to you.
Most CWU Branches will have someone who has had CWU training on pensions issues and can give you advice, though at the end of the day it is up to you to decide what is best for your personal circumstances.
You do not pay tax on a pension lump sum payment. I'm not sure about NI, but I don't think you would pay that.
If you want to take all your benefits, the pension accrued after 31 March 2010 (NRA 65 Benefits), will be actuarially reduced by 5% pa,
so you would lose about 25%, I think.
If you are a CWU member, you can ask your CWU Branch Secretary if your Branch has a Rep who can explain the terms to you.
Most CWU Branches will have someone who has had CWU training on pensions issues and can give you advice, though at the end of the day it is up to you to decide what is best for your personal circumstances.
You do not pay tax on a pension lump sum payment. I'm not sure about NI, but I don't think you would pay that.
-
RobertT
- EX ROYAL MAIL
- Posts: 6548
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: PENSION HELP PLEASE
Baldrick is correct in saying that only your NRA65 benefits will be reduced assuming you take your pension at 60.skeenie wrote:HI, IM 60 IN JUNE AND HAVE RECEIVED A PENSION PLAN LETTER GIVING A LOT OF OPTIONS WHICH IM HAVING DIFFICULTY FOLLOWING TO BE HONEST. I WANT TO TAKE ALL OF MY BENEFITS NOW AS IM NOT SURE KEEPING THEM IN THE PENSION PLAN WOULD BE BENEFICIAL TO ME AS THERE ARE TOO MANY CHANGES NOW.
DO YOU PAY TAX AND NI ON THE LUMP SUM OR JUST ON THE PENSION BENEFITS. IM PLANNING TO KEEP ON WITH ROYAL MAIL UNTIL I CAN LOOK FOR ALTERNATIVE EMPLOYMENT SO AT LEAST WILL STILL GET A WAGE.
You don't pay any tax or NI on the lump sum.
You don't pay NI on pension payments.
You pay tax on your pension in the same way as you pay tax on your income now. So under 65's currently have a personal tax allowance of £6,475(going up to £7,475 in April 2011), everything earned above that is taxable.
Links to all RM pension related websites are here
-
postie59
- EX ROYAL MAIL
- Posts: 19
- Joined: 26 Jan 2009, 20:05
- Gender: Male
Re: PENSION HELP PLEASE
Thanks for your help guys. Im going to stay on with royal mail but only till i try and get something part time so dont think it would be worth my while staying in the pension scheme. will have a think about it tho.