Taking pension early after September

paulp · Post by **paulp** » 24 Jul 2017, 18:49

Some people at my office seem to think after September you will only lose 1% per year you take it early anyone know anything about it.

Post by **RobertT** » 25 Jul 2017, 04:21

Sounds like idle shop floor gossip to me.

I can't think of any logical reason why RM would want to increase their costs on pension payouts, when they're trying to cut everything else.

Post by **nataddick** » 25 Jul 2017, 07:53

There has been confusion in our office over the 1% exit fee that will apply to workplace (money purchase) personal pensions from 1 October 2017. This is not the same thing as an actuarial reduction of 5% p.a.for taking RMPP benefits early !

https://www.theguardian.com/money/2016/ ... d-over-55s" onclick="window.open(this.href);return false;

Post by **RobertT** » 25 Jul 2017, 13:49

I’d forgotten all about that!

Although it has been mentioned on these forums before: http://www.royalmailchat.co.uk/communit ... 27&t=74847" onclick="window.open(this.href);return false;

paulp · Post by **paulp** » 25 Jul 2017, 19:31

Thanks for clearing it up

heapsy · Post by **heapsy** » 25 Jul 2017, 19:34

nataddick wrote:There has been confusion in our office over the 1% exit fee that will apply to workplace (money purchase) personal pensions from 1 October 2017. This is not the same thing as an actuarial reduction of 5% p.a.for taking RMPP benefits early !

https://www.theguardian.com/money/2016/ ... d-over-55s" onclick="window.open(this.href);return false;

Think you are spot on there, and in fact it means an additional loss of money, over and above the 5% per year reduction. Not really worth it, unless you are absolutely desperate for cash due to some impending financial crisis.