Royal Mail Collective Plan

[Iva bigredbag]

So I just got my login details for this plan today. Logged in and looked at my predicted lump sum amount and income for life amount.

Lump Sum at 67 - £15000
Income for life at 67 - £5000

I mean is that a joke? £15000 is a total waste of time for a pension that I would have been paying into for over 20 years by then, and the £5000 is even worse £5000 on top of state pension about £17000 a year, by the time I am 67 that will buy you a mars bar and a packet of crisps.

In my other pension the contributions based RM pension I have been in for 13 years, I have £50000 saved up and was predicted to have £140000 by the time I was 67 years old.

I get it a £5000 income for life could add up if I live to 100, which is the whole point of this scheme, for it to make sense you need to live a ripe old age, but will I really live to 100 and if I do how many years after 67 will I still have decent health (unlikely) you think £5000 a year will make a big difference in my lifestyle?

Total joke I'd rather build up a big pot, cash it in and spend it while I am still healthy and active enough to do it.

I am seriously considering leaving this scheme and joining a private one. I know I won't get Rm contribution but the return is so bad on this scheme I think I would get better returns doing it myself.

[TopperGas]

So I just got my login details for this plan today. Logged in and looked at my predicted lump sum amount and income for life amount.

Lump Sum at 67 - £15000
Income for life at 67 - £5000

I mean is that a joke? £15000 is a total waste of time for a pension that I would have been paying into for over 20 years by then, and the £5000 is even worse £5000 on top of state pension about £17000 a year, by the time I am 67 that will buy you a mars bar and a packet of crisps.

In my other pension the contributions based RM pension I have been in for 13 years, I have £50000 saved up and was predicted to have £140000 by the time I was 67 years old.

I get it a £5000 income for life could add up if I live to 100, which is the whole point of this scheme, for it to make sense you need to live a ripe old age, but will I really live to 100 and if I do how many years after 67 will I still have decent health (unlikely) you think £5000 a year will make a big difference in my lifestyle?

Total joke I'd rather build up a big pot, cash it in and spend it while I am still healthy and active enough to do it.

I am seriously considering leaving this scheme and joining a private one. I know I won't get Rm contribution but the return is so bad on this scheme I think I would bet a better one doing it myself.

To receive a £5,000 pension annually you'll need a pot of at least £100,000 which doesn't sound to bad for 20 years savings on a postie's average earnings? I assume you can still take a larger lump sum at retirement if that's your choice but you'll have to pay tax if it's over 25% of the pot.

[ted_e_bear]

Are you looking at the middle figures of what you get "if the adjustments are as we estimate" ?

I've only got 9 years to go and mine says £9k lump plus £3k pension

[Iva bigredbag]

Yeah you could take a lump sum it was £15000 !!
Like I said £5000 a year not making any large difference to anyone's lifestyle. And to get that £100 000 you are talking about I would need to live to 87 years old. Then when you die your next of kin only get 50% of whats left in your pot. A total con, pathetic return that drips into your bank account until you die. It will have minimum effect on your quality of life or the ability to afford things. The contributions based pension predicted I would have £140000 by the time I retire, it would take 27 years after 67 years old ( 94 year old) to accumulate that amount. That's right I would have to live until I was 94 years old to get the same return in this collective plan. Again I am seriously considering leaving it.

[Iva bigredbag]

Are you looking at the middle figures of what you get "if the adjustments are as we estimate" ?

I've only got 9 years to go and mine says £9k lump plus £3k pension

Yes I am taking the middle figure, obviously the lower estimates are a lot worse and the higher estimate not much better than middle. It's a really bad scheme for us.

[ted_e_bear]

Are you looking at the middle figures of what you get "if the adjustments are as we estimate" ?

I've only got 9 years to go and mine says £9k lump plus £3k pension

Yes I am taking the middle figure, obviously the lower estimates are a lot worse and the higher estimate not much better than middle. It's a really bad scheme for us.

So no idea why but on the face of it I'm better off pro rata to you as I've got a lot less time in fact less than half to go until I'm 67.

I'll add just done some simple maths, obviously I know nothing about the pension minefield so I'm probably totally incorrect here but according to my wage slip the pension deduction is £31 so if it was about that until 67 I'd pay in approx 14k which it appears I'd claim most of in the 1st year with the lump sum so that's confused me further.

[tramssirhc]

Yet another CWU fail. It's got disaster written all over it and it's not going to be the new default pension scheme taken up by other workers. Of course it was pushed by CWU officials who are in a defined benefit scheme paid for by the members.

[N|M]

Are you lot full time ? as ive had a look at mine and the figures are a lot different

Income for life @ 67 = £7,300 (middle figure taken)

Lump sum @ 67 = £35,490.00

BTW - i work nights in MC on 35hrs with just over 20 year left to go

[kazardaimenu]

At least with the old scheme you had a pot that was yours. New scheme you are at the mercy of the fund managers and when you’re gone your income dies with you.

[Iva bigredbag]

Yet another CWU fail. It's got disaster written all over it and it's not going to be the new default pension scheme taken up by other workers. Of course it was pushed by CWU officials who are in a defined benefit scheme paid for by the members.

You just knew the CWU would have their fingerprints all over this. We are apparently the only company in the UK doing this pension.

It's a great pension if you live to 100 years old and have good health.

[RobertT]

So I just got my login details for this plan today. Logged in and looked at my predicted lump sum amount and income for life amount.

Lump Sum at 67 - £15000
Income for life at 67 - £5000

I mean is that a joke? £15000 is a total waste of time for a pension that I would have been paying into for over 20 years by then, and the £5000 is even worse £5000 on top of state pension about £17000 a year, by the time I am 67 that will buy you a mars bar and a packet of crisps.

In my other pension the contributions based RM pension I have been in for 13 years, I have £50000 saved up and was predicted to have £140000 by the time I was 67 years old.

I get it a £5000 income for life could add up if I live to 100, which is the whole point of this scheme, for it to make sense you need to live a ripe old age, but will I really live to 100 and if I do how many years after 67 will I still have decent health (unlikely) you think £5000 a year will make a big difference in my lifestyle?

Total joke I'd rather build up a big pot, cash it in and spend it while I am still healthy and active enough to do it.

I am seriously considering leaving this scheme and joining a private one. I know I won't get Rm contribution but the return is so bad on this scheme I think I would get better returns doing it myself.

You also have the option of taking a cash value instead of the pension for life, and transferring to a personal pension.
See the RMCPP website for details...

I don't know exactly how that will be worked out, but it'll be your share of the overall pot at the time.

If you assume your annual pension will be paid out for life, and an average 67 year old man is expected to live to around 82, then a simple multiplication should give you a rough idea of how much the transfer value will be.

Add that to the RMDCP pot you already have!

It might be worth pointing out that if you plan to withdraw all of your RMDCP pot(and any transferred in cash) in one go, you'll lose quite a lot in tax.
Assuming no other income in that particular tax year, a £140k pot would take a £30k tax hit!

[Avanmanthing]

I can’t seem to register.

Asking for registration code ?

Personal identification code which I’ve got.

[Avanmanthing]

What is the registration code

[yellowbelly]

What is the registration code

Only did it this morning, IIRC after putting in the Personal Identification Code (a series of 9 capital letters for me) and inputting some details (which included my mobile) I got a second code through on my phone to sort of verify everything.

[N|M]

You will get a letter with a card that has in the bottom left a

Personal identification code: (enter this all in CAPS)
&
Your royal mail employee ID (if you forgot what it was)

At the top of that card is a QR code and a web address if your doing it on a home PC rather than a mobile

then you follow the on screen instructions - will ask for your NI number and date of birth along with a mobile number or ask for you to install an app that adds to proving its you that is logging to the site.

Reg code is the code sent to your mobile or if used the app will be in there.

Also make sure to save the ONE TIME CODES somewhere safe, there are 10 i think which can only be used once each, should you forget login details etc.