Should i join the new scheme?

[frankieboy]

hi all, been working for royal mail now for just over a year (albeit still on a temporary contract) and have today received all the paperwork to join the new scheme as from the 1st of April. I was made redundant from my last job 3 years ago and since then have only been able to secure temp or agency work so i haven,t paid into another pension scheme since then, 2 questions -

1. is it worth joining the new scheme and if so

2. would it be beneficial to me to transfer my previous pension into this one

any advice would be much appreciated.

[johnnyp]

Welcome to RMC frankieboy Im no expert on pensions,but someone on this site will be able to give you advice Enjoy and spread the word friend.

[k979aaa]

As far as i know their still is no new pension scheme at the moment but all pension's are now not worth what they were buy a house and forget pensions as that's all the uk population think about and stuff the future it will take care of it's self so our govenment and the lord's think!. It will come back and bite them all on the ass.

[POSTMAN]

I think it depends on your age frankie,if you're a youngen and looking to stay in the job long term then personally i would say join it.

You have to ask yourself,if you don't join it would you start a private one?

As for the other question,depends on how long and how much you've payed into your previous one.

There is a Royal Mail pensions helpline anyone got the number?
We should really keep it on the site.

[k979aaa]

I think it depends on your age frankie,if you're a youngen and looking to stay in the job long term then personally i would say join it.

You have to ask yourself,if you don't join it would you start a private one?

As for the other question,depends on how long and how much you've payed into your previous one.

There is a Royal Mail pensions helpline anyone got the number?
We should really keep it on the site.

Back of wageslip postline 5456 4545 or STD 0114 241 4545

[Dynamo 2]

Hi guys, just had a package delivered and enclosed were two items, a plan guide and an investment guide to The Royal Mail Defined Contribution Plan. The Plan begins accepting contributions from members from 1st April 2009 onwards. I assume this is what frankieboy is referring to.

[frankieboy]

Yeah thats the one dynamo, filled the forms in and sent them off. Just need to decide whether to transfer my other private pension into the royal mail one, may need to take further advice, maybe best not to keep all my eggs in one basket so to speak.

[RobertT]

If your previous pension was final salary then as a general rule it's better to keep it where it is.

If it's not,then transferring it is an option,but beware of charges,especially if it's a 'with profits' policy.

[DGP1]

My only advice is to talk to an independant financial advisor before doing anything.

[heapsy]

As far as i know their still is no new pension scheme at the moment but all pension's are now not worth what they were buy a house and forget pensions as that's all the uk population think about and stuff the future it will take care of it's self so our govenment and the lord's think!. It will come back and bite them all on the ass.

You're forgetting something here, it wont bite THEM on the ass as they will be long dead before the s**t hits the fan. The pensions problem needs a great deal of thought and people should try and diversify, if they can afford to. I certainly wouldn't rely on the government to sort it out.

[RobertT]

The pensions problem needs a great deal of thought and people should try and diversify, if they can afford to. I certainly wouldn't rely on the government to sort it out.

Good point,you should never put all your eggs in one basket.

Pensions have got the advantages of tax relief and 'free money' from the employer,but you have to pay tax when you recieve them and you get hammered if you take them early.And Defined Contribution plans are generally crap compared to Defined Benefit schemes.

ISA's don't get any free money from the employer,but they're tax free and you can spend the money as you see fit. They can make an excellent top-up retirement fund as long as your not tempted to dip into it.

[heapsy]

Another good one would be to do as I did and start an endowment, purely with saving in mind. I have one due to mature in 2011 after 25 years. Tax free and I can then put it into National Savings, again tax free, index linked.

[stodgy88]

i left royalmail 16 months ago having worked for them for 3 years i am now 54 ,what choices if any do i have regading my pension(could i take it now) cheers

[RobertT]

i left royalmail 16 months ago having worked for them for 3 years i am now 54 ,what choices if any do i have regading my pension(could i take it now) cheers

Yes you can take your pension now if you like,although your not likely to get much because :-

a) your taking it before 60
b) you only worked for RM for 3 years

I should get a quote to see how much you might get.

For more info:-
http://www.royalmailgroup.com/portal/rm ... d=23400505" onclick="window.open(this.href);return false;