Probably a stupid question!

[pacey]

Hi all, I’m trying to get my head around all of this pension stuff with the new one around the corner & I’m just getting more and more confused!

You know when we get our annual statements from the RMPP and the RMSPS , I’ve always understood that I add those two figures together and that is my whole monthly pension, then the Cash balance one is just a lump sum on top. Is that right?

Why I’m getting confused is that I thought those statements were the actual pensions I would get at retirement - but now that we have a fourth pension scheme in the mix, I’ve worked out what I’m going to get on the new scheme using the helpful calculators people have posted on here, but do I just add the new pension and lump sum to the other three (the two pension amounts and the cash balance lump sum)? Have the first two schemes just grown because of interest now?

Will the statements for the other ones now get smaller to reflect that we are paying into this new scheme instead? As otherwise it just feels like having a fourth scheme I’m all of a sudden going to get a whole chunk more that I wasn’t expecting when there was only the three schemes?

Not sure if I’m making any sense, I’ve totally confused even myself now!

[RobertT]

Your RMSPS and RMPP statements have Age60 and Age65(also known as NRA60/65) benefits on them, that's specifically what you need to add together to work out what you'll get at those ages. You can take them earlier, but they typically get reduced by 5% for each year you take them before Normal Retirement Age(NRA).

You stopped building up actual pension via those schemes in 2018 and they've been increasing with inflation each year since.
For the last 6.5 years you've been building up a lump sum via the DBCBS, to be taken with Age65 benefits. It can also be transferred out to a personal pension if you choose.

The NRA for the new scheme will be 67, so your calculations are what you'll get from that age, unless you take it earlier in which case it will be reduced. You can also transfer out the pension and/or the lump sum(inc booster) to a personal pension.

Full details are on the relevant scheme websites(see the stickie).

[pacey]

Your RMSPS and RMPP statements have Age60 and Age65(also known as NRA60/65) benefits on them, that's specifically what you need to add together to work out what you'll get at those ages. You can take them earlier, but they typically get reduced by 5% for each year you take them before Normal Retirement Age(NRA).

You stopped building up actual pension via those schemes in 2018 and they've been increasing with inflation each year since.
For the last 6.5 years you've been building up a lump sum via the DBCBS, to be taken with Age65 benefits. It can also be transferred out to a personal pension if you choose.

The NRA for the new scheme will be 67, so your calculations are what you'll get from that age, unless you take it earlier in which case it will be reduced. You can also transfer out the pension and/or the lump sum(inc booster) to a personal pension.

Full details are on the relevant scheme websites(see the stickie).

Ah thank you so much RobertT, I find your replies so helpful.

So I think I’ve always thought the statement increases each year were based on me working at RM until the retirement ages quoted (and so is assumed that if I stopped working then they would all be reduced), but actually they are actual figures that I’ve in effect already built up? (Obviously reduced if I took them earlier than the expected retirement dates, but not reduced if I stopped working for RM?) - seeing them go up each year in my head it was because I’d worked another year, but obvs that’s the inflation instead! Sorry, realised I sound even thicker now!

Feel like I’ve finally had a lightbulb moment! Haha!

Thanks so much for your help.

[RobertT]

There was a time when the statements gave figures based on you continuing in the job until 60, and
then to 65 when the NRA was increased(for post 2010 benefits). But that changed around 9-10 years ago if I remember correctly and statements are now what your pension is actually worth on 31st March each year.

RM pensions are quite difficult to understand. I would say you have a better grasp of things than many do.