Underwhelming RMSPS Pension illustration.

[BenacreNick]

Sorry to post, but does anyone else feel underwhelmed by the RMSPS pension illustration in the post today.

The numbers are quite small, and perhaps only being a part-time employee then is reflected in these numbers

[NorthernBoy]

Do you mean it is hard to see the numbers because they are small print, or that the values are low?

[high1ander]

ive not had my rmsps statement in yet but i got my rmdcp statement in today
got to laugh it says see how your lifetime savings are growing
it has dropped by over 300 quid in a year
its not growing its shrinking.....you would think that with inflation so high over the last year it would have grown a bit but nope
so looks like they have all took a hit

[guardianangel]

If i was just starting work now id be opting out of the company pension scheme it will leave you on the breadline in retirement ,that's if you retire at all .

[Tman]

What, and forego the company's pension contributions?
Please don't become a financial adviser.

[freespeech]

If i was just starting work now id be opting out of the company pension scheme it will leave you on the breadline in retirement ,that's if you retire at all .

That's madness......RM contribute almost twice as much as we do as individuals with combined contributions at almost 20% of pensionable pay.

[BenacreNick]

Northernboy, it's perfectly readable, but sadly the numbers are small in their value.

[RobertT]

If i was just starting work now id be opting out of the company pension scheme it will leave you on the breadline in retirement ,that's if you retire at all .

That's madness......RM contribute almost twice as much as we do as individuals with combined contributions at almost 20% of pensionable pay.

What, and forego the company's pension contributions?
Please don't become a financial adviser.

Myself and GA have already had a little discussion on this:
viewtopic.php?p=1072648#p1072648

He thinks it's better to rely on state benefits!

Based on the current benefits system, if your weekly income in retirement is below £201 if single or £306 for a couple, then you can get Pension Credit which tops up your income to those amounts.
That top up can mean you qualify for other benefits too, effectively increasing your income further.

In that scenario, having a relatively small occupational pension could be counter productive, if your total income is over those limits. Because there would be no access to Pension Credit. Although some other benefits may be payable, based on the individual.

With the introduction of the flat rate state pension in 2016 and the levelling out of benefits, such as no SERPS, no married woman's stamp, 35 years entitlement, etc. Over the course of time it will mean far more people will qualify for the full amount(currently £203), and so won't benefit from any top ups.

Meaning, having your own pension via work or as an individual, won't disadvantage you as it might for some at the moment.

So opting out of a company pension and relying on the state, is actually much more likely to leave you living on the breadline. Plus you're probably more likely to have to work until state pension age, or even longer.

[guardianangel]

If i was just starting work now id be opting out of the company pension scheme it will leave you on the breadline in retirement ,that's if you retire at all .

That's madness......RM contribute almost twice as much as we do as individuals with combined contributions at almost 20% of pensionable pay.

What, and forego the company's pension contributions?
Please don't become a financial adviser.

Myself and GA have already had a little discussion on this:
viewtopic.php?p=1072648#p1072648

He thinks it's better to rely on state benefits!

Based on the current benefits system, if your weekly income in retirement is below £201 if single or £306 for a couple, then you can get Pension Credit which tops up your income to those amounts.
That top up can mean you qualify for other benefits too, effectively increasing your income further.

In that scenario, having a relatively small occupational pension could be counter productive, if your total income is over those limits. Because there would be no access to Pension Credit. Although some other benefits may be payable, based on the individual.

With the introduction of the flat rate state pension in 2016 and the levelling out of benefits, such as no SERPS, no married woman's stamp, 35 years entitlement, etc. Over the course of time it will mean far more people will qualify for the full amount(currently £203), and so won't benefit from any top ups.

Meaning, having your own pension via work or as an individual, won't disadvantage you as it might for some at the moment.

So opting out of a company pension and relying on the state, is actually much more likely to leave you living on the breadline. Plus you're probably more likely to have to work until state pension age, or even longer.

You do realise when the government brought in that every company must offer a pension scheme they were thinking long term,its only a matter of time before they change the rules again ,watch this space ,with the retirement age going up so does your works pensions age and with life expectancy falling and the government relieving you of your hard earned money for care and no pension credits as you pointed out is it really worth it for maybe the last ten years of your life ,remember only 4% of the population make it past 85 and its falling year on year,of course a financial adviser will tell you different that's their job to make money.Only my opinion but as i said if i was just starting out now i'd enjoy my life to the full while im young and healthy and let the state look after me when im old,i'll be quite happy sat in my garden drinking tea and biscuits knowing i gave them nothing and had a bloody good life,LIVE FOR TODAY AS TOMORROW MAY NOT BE YOURS,people tend to spend all their life what may or may not happen in decades to come.

[guardianangel]

If i was just starting work now id be opting out of the company pension scheme it will leave you on the breadline in retirement ,that's if you retire at all .

That's madness......RM contribute almost twice as much as we do as individuals with combined contributions at almost 20% of pensionable pay.

What, and forego the company's pension contributions?
Please don't become a financial adviser.

Myself and GA have already had a little discussion on this:
viewtopic.php?p=1072648#p1072648

He thinks it's better to rely on state benefits!

Based on the current benefits system, if your weekly income in retirement is below £201 if single or £306 for a couple, then you can get Pension Credit which tops up your income to those amounts.
That top up can mean you qualify for other benefits too, effectively increasing your income further.

In that scenario, having a relatively small occupational pension could be counter productive, if your total income is over those limits. Because there would be no access to Pension Credit. Although some other benefits may be payable, based on the individual.

With the introduction of the flat rate state pension in 2016 and the levelling out of benefits, such as no SERPS, no married woman's stamp, 35 years entitlement, etc. Over the course of time it will mean far more people will qualify for the full amount(currently £203), and so won't benefit from any top ups.

Meaning, having your own pension via work or as an individual, won't disadvantage you as it might for some at the moment.

So opting out of a company pension and relying on the state, is actually much more likely to leave you living on the breadline. Plus you're probably more likely to have to work until state pension age, or even longer.

You do realise when the government brought in that every company must offer a pension scheme they were thinking long term,its only a matter of time before they change the rules again ,watch this space ,with the retirement age going up so does your works pensions age and with life expectancy falling and the government relieving you of your hard earned money for care and no pension credits as you pointed out is it really worth it for maybe the last ten years of your life ,remember only 4% of the population make it past 85 and its falling year on year,of course a financial adviser will tell you different that's their job to make money.Only my opinion but as i said if i was just starting out now i'd enjoy my life to the full while im young and healthy and let the state look after me when im old,i'll be quite happy sat in my garden drinking tea and biscuits knowing i gave them nothing and had a bloody good life,LIVE FOR TODAY AS TOMORROW MAY NOT BE YOURS,people tend to spend all their life worrying what may or may not happen in decades to come.

[Tman]

All fine and dandy, until those "decades to come" become the here and now, though you'll have plenty of time to ponder on how and why you willingly gave up all that free money from RM.

[scoobydo79]

If i was just starting work now id be opting out of the company pension scheme it will leave you on the breadline in retirement ,that's if you retire at all .

What’s the alternative please?

[RobertT]

You do realise when the government brought in that every company must offer a pension scheme they were thinking long term

Yes, they were encouraging everyone(and their employers) to fund a decent chunk of their pension provision themselves, instead of it being paid for by the state.

its only a matter of time before they change the rules again ,watch this space

Rules will always change, and it's usually to the detriment of the normal man/woman.
I think the thing to do, is put yourself in a position so those changes don't affect you too much.

with the retirement age going up so does your works pensions age

Some company pensions are directly linked to state pension age, but not all. From 2028 it won't be possible to access any pension more than 10 years before SPA. Unless for health reasons.
But there's more to retirement savings than just pensions!

and with life expectancy falling and the government relieving you of your hard earned money for care and no pension credits as you pointed out is it really worth it for maybe the last ten years of your life

Who says it has to be for the last 10 years of life?
My pension savings are helping me to retire early!
Based on averages, I've still got the best part of 30 years until I pop my clogs.

Only my opinion but as i said if i was just starting out now i'd enjoy my life to the full while im young and healthy and let the state look after me when im old,i'll be quite happy sat in my garden drinking tea and biscuits knowing i gave them nothing and had a bloody good life,LIVE FOR TODAY AS TOMORROW MAY NOT BE YOURS,people tend to spend all their life what may or may not happen in decades to come.

Personally I think a more balanced approach is best.
I don't really see the point in having it all when you're young, to the detriment of when you're older.
Wealth, health, etc should be shared equally throughout your life, as much as possible.
Sooner or later, tomorrow always becomes today!

I certainly wouldn't want to be relying on the state, when the ratio of older to younger people is increasing. Realistically all their going to give me is the bare minimum.

Each to their own!

[mjd24]

If i was just starting work now id be opting out of the company pension scheme it will leave you on the breadline in retirement ,that's if you retire at all .

Utter nonsense.

[BenacreNick]

OK thanks for all of your interesting responses, however to get back on topic, was anyone else left underwhelmed with their "figures quoted", just like I was ?

Many thanks.