Who's lucky enough to be 55 before 2028.

[RobertT]

Retirement at 55 is possible, as I've done it myself.
But very few people will be able to do it on just the RM pension!

Assuming you're not in line for a windfall, it's all about starting early and saving/investing as much of your own money as possible.

Over the longer term, even small regular amounts can compound and grow into decent sums of money. Anyone who's paid into Bonusplan for 20+ years will vouch for that.

In practice, most people don't take much interest in their pension until they reach their 50's, and it may well be too late to make a big difference by then.

[nightcrawler]

I’ll be 55 in 2026 but don’t you incur a 5% penalty - PER YEAR - if you draw on your pension before 60? So for example, if you drew on it at 55 that’s 5% x 5 years = 25% penalty. That’s a lot.

[Sean06]

I’ll be 55 in 2026 but don’t you incur a 5% penalty - PER YEAR - if you draw on your pension before 60? So for example, if you drew on it at 55 that’s 5% x 5 years = 25% penalty. That’s a lot.

Don't take it then..

[RobertT]

I’ll be 55 in 2026 but don’t you incur a 5% penalty - PER YEAR - if you draw on your pension before 60? So for example, if you drew on it at 55 that’s 5% x 5 years = 25% penalty. That’s a lot.

That applies to your NRA60 benefits, but if you take your NRA65 at 55, you'll see a 50% hit.

[NWpostie]

I’ll be 55 in 2026 but don’t you incur a 5% penalty - PER YEAR - if you draw on your pension before 60? So for example, if you drew on it at 55 that’s 5% x 5 years = 25% penalty. That’s a lot.

That applies to your NRA60 benefits, but if you take your NRA65 at 55, you'll see a 50% hit.

Best option is to take it when due and save up as much as you can as well as investing in an AVC.

The earlier you start the better it is, I've been in my pension scheme since I was 20, I'm now 56 with 4 years to go to NRA60, my pension statements looks healthy and hopefully it will be enough once final calculations comes in, the new CDC pension scheme is due to come in April (estimated) will change things a bit, for personally I will.only be in this scheme 3-4 years so I don't how much I will benefit from it.

[RobertT]

Best option is to take it when due and save up as much as you can as well as investing in an AVC.

The earlier you start the better it is, I've been in my pension scheme since I was 20, I'm now 56 with 4 years to go to NRA60, my pension statements looks healthy and hopefully it will be enough once final calculations comes in,

the new CDC pension scheme is due to come in April (estimated) will change things a bit, for personally I will.only be in this scheme 3-4 years so I don't how much I will benefit from it.

It's fairly easy to work out roughly how much you should get from CDC using the information at your disposal.

https://www.myroyalmail.com/collective-plan/benefits

[Woody Guthrie]

I don’t see why it should be moved to 57 though. It’s our money. Our decision. Our life.

We get 'free money' when paying into a pension – from the employer and the taxman.

No we don't.
An occupational pension is just deferred wages.
It's part of your overall employment package.
It's not "free money".
We work for it.

The fact that we have to abide by the contractual rules associated with recieving it has nothing to do with whether it's earned or not.

[RobertT]

I think my use of inverted commas suggests it's just a loose term. It does to me anyway.

Whether you want to call it free money, deferred wages or something else, really is irrelevant.

[postslippete]

Found this on pensionbee.com

New Auto Enrolment pension rules mean that your employer must offer you a workplace pension and they must contribute to it as long as you’re making contributions. This effectively means that with a workplace pension plan you get free money from your employer towards your retirement.

https://www.pensionbee.com/pensions-exp ... to-pension

[Woody Guthrie]

I think my use of inverted commas suggests it's just a loose term. It does to me anyway.

Whether you want to call it free money, deferred wages or something else, really is irrelevant.

It's an unfortunate "loose term".
It leads people to believe that an occupational pension is a gift from the employer, that it is theirs to change and remove as they see fit and we should be grateful for any crumbs thrown our way.

It is exactly the attitude that has seen our pension provision degraded from what it was to the poor shadow of a pension that it now is.

It is extremely relevant what we employees or in your case ex-employees call it and the importance placed on protecting it. It is no more "free money" than the wages that go into the bank every week.

[comeracing]

I’ll be 55 in 2026 but don’t you incur a 5% penalty - PER YEAR - if you draw on your pension before 60? So for example, if you drew on it at 55 that’s 5% x 5 years = 25% penalty. That’s a lot.

That applies to your NRA60 benefits, but if you take your NRA65 at 55, you'll see a 50% hit.

No it's not a 50 % hit at 55 ,it's 25 % at 55

[Sean06]

I’ll be 55 in 2026 but don’t you incur a 5% penalty - PER YEAR - if you draw on your pension before 60? So for example, if you drew on it at 55 that’s 5% x 5 years = 25% penalty. That’s a lot.

That applies to your NRA60 benefits, but if you take your NRA65 at 55, you'll see a 50% hit.

No it's not a 50 % hit at 55 ,it's 25 % at 55

If you actually read what is written it clearly says if you take your NRA65 at 55 you'll see a 50% hit

[dazer0070]

I’m 55 in June 2028

[Edward Hunter]

I’m 55 today! How do I go about finding how much pension I’m entitled too!ive 25 years service and want to go in next 6 months as had enough like most people, I know it won’t be enough to live on but hopefully get a part time job, also does anyone know how much I would get approximately, I’m trying to work out but not easy!

For a rough guide i took mine at 58, with 33 year service, so 10% reduction. I took the max lump sum which was circa £44,000 and now get a monthly total pension of about £475
This was only the NRA 60 part, im still working and pay in to the NRA 65 bit

[matthew68]

I’m 55 today! How do I go about finding how much pension I’m entitled too!ive 25 years service and want to go in next 6 months as had enough like most people, I know it won’t be enough to live on but hopefully get a part time job, also does anyone know how much I would get approximately, I’m trying to work out but not easy!

For a rough guide i took mine at 58, with 33 year service, so 10% reduction. I took the max lump sum which was circa £44,000 and now get a monthly total pension of about £475
This was only the NRA 60 part, im still working and pay in to the NRA 65 bit

That seems decent!