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buy down

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
mitzi
Posts: 130
Joined: 03 Jun 2007, 21:03
Gender: Male
Location: north west

buy down

Post by mitzi »

I was considering taking a buy down of my hours. Does anyone know if this will affect my pension?
RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

Re: buy down

Post by RobertT »

If you’re in the final/average salary pension then I believe the final salary element is now ring fenced and will continue to rise with inflation regardless of hours worked, but I would suggest contacting the pensions service centre to make sure, assuming you can get an informed answer from them!!!

Your potential future pension(NRA65) will obviously be reduced after taking buy down, because you’re working less hours and earning less pay and therefore building up less pension.
Links to all RM pension related websites are here
Fatboyslim
EX ROYAL MAIL
Posts: 117
Joined: 30 May 2010, 10:27
Gender: Male

Re: buy down

Post by Fatboyslim »

I have looked into the same problem. I'm thinking about doing the same.

I contacted pensions, both in email and phone. The phone call confirmed what I already thought would happen. The email, was rubbish. Made no sense, and the grammar was absolutely dreadful.

Your NRA 60 has been closed several years. What you have now, cannot be effected by a reduction in hours. The NRA 65 is a different matter though.