Pension supplement question

[Wullie10]

I started 1989. I understand you get a supplement if I leave the company at 60 until 67. I bought added years. That means I contributed longer. Seems an odd question but would that mean I'd be exempt from the supplement?

[FAB]

No you get the supplement for all the years you worked or brought with Added Years. It gets added once you leave RM and stops at your State Pension Age as you mentioned.

[heapsy]

Can I just add. When working out your lump sum for pension purposes, the supplement is NOT included. That is added later. Hope that helps.

[postie2007]

Question for Heapsy, did you get a supplement from both pension schemes it appears I am only getting one.

[heapsy]

I'm not retired yet. A supplement should be payable from both schemes. But I was wondering how they worked out the lump sum element of the pension. Did they include the supplement before calculating the lump sum, or was it taken solely from the main pension pot. The pension office confirmed that they add the supplement after. So, for example, my NRA60 pension pot is £160,995.60. Plus AVCs Bonus plan £2,147.06 + Flexi plan £39,641.99 (£41,789.05) £202,784.65 in total. So taking 25% of the previous figures gives me a lump sum of £50,696.16. The remaining £152,088.48 gives a starting pension of £7,604.42. Plus the supplement of £1,225.99 or £8,830.41. I intend to split the lump between the main part and the AVCs. So £50,696.16 - £41789.05 = £8,907.11. Obviously, these figures constantly change, so a clearer picture will emerge as time goes by.The AVCs I intend to use as a supplement until 67. This will give me an extra £5,969.86 a year. I'll bank £8,907.11. I have other investments and 3 other pensions including the state pension. I'm fortunate that I will inherit from mum when she dies. I know I don't know the amount, or timing, but I will be able to finish at 60 with an income of £300 + a week and not work again if I choose not to.

[RobertT]

I'm not retired yet. A supplement should be payable from both schemes. But I was wondering how they worked out the lump sum element of the pension. Did they include the supplement before calculating the lump sum, or was it taken solely from the main pension pot. The pension office confirmed that they add the supplement after. So, for example, my NRA60 pension pot is £160,995.60. Plus AVCs Bonus plan £2,147.06 + Flexi plan £39,641.99 (£41,789.05) £202,784.65 in total. So taking 25% of the previous figures gives me a lump sum of £50,696.16. The remaining £152,088.48 gives a starting pension of £7,604.42. Plus the supplement of £1,225.99 or £8,830.41. I intend to split the lump between the main part and the AVCs. So £50,696.16 - £41789.05 = £8,907.11. Obviously, these figures constantly change, so a clearer picture will emerge as time goes by.The AVCs I intend to use as a supplement until 67. This will give me an extra £5,969.86 a year. I'll bank £8,907.11. I have other investments and 3 other pensions including the state pension. I'm fortunate that I will inherit from mum when she dies. I know I don't know the amount, or timing, but I will be able to finish at 60 with an income of £300 + a week and not work again if I choose not to.

Don't forget, you'll have unused Personal Tax Allowance if your income is less than £12,570(current rates).
An income of £8,830 per year will mean you can drawdown another £3,740 tax free from your SIPP, over and above the normal 25% tax free limit.

[heapsy]

Yes, I was aware of that. I'm hoping to do just that. Cheers.