Pension query

[emu72]

Ive been paying into a rm pension since 2001 but have been informed by the rmpp that i don’t get any age 60 benefits and only age 65.Is this right.I know with the rmsps benefits can be taken at 60.

[RobertT]

The benefits you accrued up to 2012, which is your Age60(upto 2010) and the first 2 years of Age65(2010-2012), are paid by the RMSPS.

The benefits from 2012 to 2024, which is Age65(2012-2018) and DBCBS(2018-2024) are paid for by the RMPP.

It is possible the RMPP might pay a small amount of Age60, depending on certain circumstances. See your annual statements for more info.

[emu72]

Can i take the benefits from the rmpp earlier than 65 even if there is a reduction?

[RobertT]

You have to take all your Age60 benefits together and all your Age65 benefits together.

You can do that anytime after age 55, rising to 57 in 2028. Expect a 5% reduction for each year you take them early.

There is also the option of transferring some or all of your RMPP benefits(2012-2024) to a personal pension and accessing the cash from there, if over age 55/57.
If the value is more than £30k you'll need an IFA to approve it, which is easier said than done.

[emu72]

Thanks.Good bit of knowledge.

[emu72]

Oh and i take it there’s a personal tax allowance on the pension

[RobertT]

Pensions are classed as income in the same way as wages are, so any income you have over the Personal Tax Allowance(currently £12,570) is taxed.

*NIC's are not payable on pensions.
*Tax free lump sums don't count towards your income.

[Mick100]

So bit confused as video online says you’ll receive a letter from capita and one from Royal Mail pension plan saying how much you’ll get at 60 add them together to get the final figure.and in my letter from rmsps it says I have to make sure my payments from rmpp are in place before capita starts making any payments.

[Steve_claret]

So bit confused as video online says you’ll receive a letter from capita and one from Royal Mail pension plan saying how much you’ll get at 60 add them together to get the final figure.and in my letter from rmsps it says I have to make sure my payments from rmpp are in place before capita starts making any payments.

It's just a technicality that RMPP needs to pay out first but in effect you should get both pensions paid at roughly the same time. If either are delayed for any reason then you will get backdated arrears. If I remember correctly from my NRA60 they usually hold back some of the lump sums for tax purposes.

[Dorset Plodder]

If the value is more than £30k you'll need an IFA to approve it, which is easier said than done.

You wouldn't bugger it Robert. I was only ''Trying'' to transfer the Back Bay that this site advised being paid into our Pension, rather than pay packet, what a drama.

I understand that everyone's paranoid about fraudsters but having to get a form filled in by Scottish Widows to confirm they're a genuine pension company seems like Overkill.

They must have thought so as well because they never returned it and in the end I thought I'll just leave it where it is.