bonus plan and flexiplan statements

[yorkmover123]

i contribution to the Bonusplan and flexiplan i would like to take my contributions in one lump sum when am 60 in 2 years time not a yearly income.

just had my statements no mention of lump sum at 60 only esitmated yearly income form my bonus plan and flexiplan.

i plan to take my Final Salary benefits and Career Salary Defined Benefits at 60yrs take 25% lump sum and yearly income pension and still contribute to my pension till i decide to retire.

the question if you can give any advice can i take my bonus plan and flexi plan its now worth £29,792 in a lump sum plus my 25% lump sum from my pension pot at 60 yrs or should i defer my flexi plan and bonus after 60 yrs old not sure what to do .

[RobertT]

I haven't received my annual AVC statements yet, but assuming they're basically the same as previous years, they'll be a Statutory Money Purchase Illustration(SMPI), which is an industry standard way of setting out Defined Contribution pension statements.
Basically it just gives you the value of your fund/s and an estimate of how much income it will provide if you decide to purchase an annuity, making certain assumptions into account.

In practice RM allows us to use our AVC's to fund the tax free cash when taking our main NRA60 & NRA65 benefits, with a maximum lump sum of 25% of 'total pot value', see page 12 of the plan guide to how that is worked out: https://www.royalmailpensionplan.co.uk/ ... ages_0.pdf" onclick="window.open(this.href);return false;

So it's not a case of taking 25% lump sum plus AVC's, it's more a case of taking 25% lump sum which includes AVC's!

You can defer taking your AVC's until after you've taken your main benefits, but that would mean only 25% of that money being tax free, with the rest being classed as income and potentially taxed under normal PAYE rules. So in general it's not the best thing to do tax wise.

If you take all your already accrued benefits at the same time, you won't be able to continue paying into the RMPP, which means at the moment you can then pay into the RM Defined Contribution Plan instead.
Once the CDC scheme is introduced(whenever that turns out to be) you'll be able to pay into that.

[yorkmover123]

thanks Robert for your reply

[NWpostie]

I noticed my flexiplan value has gone down marginally, the market must have taken a dip, not sure what's going to happen after post coronavirus recovery.

[mr hil.]

Mine too, when I looked at the performance graphs the statement was produced just as the share price hit it's lowest point, a couple of days either way and the results would have been much different.

https://digital.feprecisionplus.com/cor ... ory=2rmp62

[NWpostie]

Interesting link, had there been no dip I would have been quids in.

I've opted for Growth, high risk with goods return strategy but you would need to take the long term view not a get rich quick, with this Covid the market is a dip as shown on the chart, when we recover the growth will start up again.

I will just have to hold on and hope it will all pay off in the end.

Other plans have shown mild to worse losses compared to mine.

[streets97]

I noticed my flexiplan value has gone down marginally, the market must have taken a dip, not sure what's going to happen after post coronavirus recovery.

If you log onto your AVC account online you will see an upto date valuation. My flexible is £10000 more than my statement

[RobertT]

I noticed my flexiplan value has gone down marginally, the market must have taken a dip, not sure what's going to happen after post coronavirus recovery.

If you log onto your AVC account online you will see an upto date valuation. My flexible is £10000 more than my statement

Yes, paper statements are old hat and in my opinion aren't really worth bothering with when you can login to your online account anytime you want.

My Flexiplan is also is currently worth around £10k more than my statement , it's scary how much things fluctuate!