Another question on taking RM pension @ 55

[heapsy]

Definitely planning to take my deferred RM NRA60 pension at age 55...

Coming up to 53 now, so probably too early to start talking to the Pensions Dept about it yet...

Anyone who has done this, how much time before 55th birthday did you need to get it all organised ?

Ta

Like you,i plan to take my pension at 55,turned 53 a couple of months ago and have got 34 years service,my fear is the goal posts will be moved and the pension trustees will scrap the retire at 55 option

D

yes it was 50 not long ago could be changed to any age

It's got nothing to do with the pension trustees. The government set the age. Their fear, and to a degree I understand it, is that people will blow all their money and then be dependent on the state. Let's face it, we all know someone who falls into the "live for today, blow the lot" category. If people are living until their 80s or even higher it could be a real problem as some people just cannot manage their own finances to save their lives. BTW the Office for National Statistics reckon that the average pensioner runs out of cash just 7 years after retirement. Think about it. No money for going out, no holidays etc. Makes you think.

[RichOrm]

Since the privatisation and "free" shares allocation, can anyone who has retired at an age less than 60 confirm if they were able to keep these shares.

Cheers, Richard (56 going on 57)

[RobertT]

Since the privatisation and "free" shares allocation, can anyone who has retired at an age less than 60 confirm if they were able to keep these shares.
Cheers, Richard (56 going on 57)

If you leave after 60 you are deemed to be retiring and will keep your shares regardless of the 3/5 year rule. If you leave before 60 and before the first 3 years of 'share ownership', you are only allowed to keep them if your going due to ill health retirement or being made redundant, I don't think voluntary redundancy would count.

You would also keep the shares if the part of the company or business you work for is sold or transferred, or if you die.

[baldrick]

You would also keep the shares ........... if you die.

Might not do you much good then - you can't take them with you!
(OK I know you mean the beneficiaries to your estate would get them).

[richard.pullan]

So essentially, my free shares are not mine. They will only become mine if I remain employed in RM for the 3 year period or meet one of the other conditions set. More like a long term bonus.
I image that will be hundreds who leave RM without meeting the conditions and therefore "lose" their shares. I use the word "lose" loosely since you cannot lose something if it was not in your possession in the first place.
What happens to all of these de-allocated shares? Who or what gets them?

[RobertT]

So essentially, my free shares are not mine. They will only become mine if I remain employed in RM for the 3 year period or meet one of the other conditions set. More like a long term bonus.

Effectively yes.

I image that will be hundreds who leave RM without meeting the conditions and therefore "lose" their shares. I use the word "lose" loosely since you cannot lose something if it was not in your possession in the first place.
What happens to all of these de-allocated shares? Who or what gets them?

When we got the second allocation of shares in April, we all got a few more than originally quoted. I assume that was due to leavers shares being re-allocated?

[petercostello]

Does that mean that if I opt to take a lump sum from the frozen part of my pension at 55 I wont lose any pension on retirement at say 60.

[RobertT]

Does that mean that if I opt to take a lump sum from the frozen part of my pension at 55 I wont lose any pension on retirement at say 60.

Under current rules you have to take all your NRA60 benefits at the same time and all your NRA65 benefits at the same time. You can take either of them any time after aged 55 if you want to, but you will suffer an acturial reduction on both the lump sum and the monthly pension.

You can however take a lump sum out of a personal(defined contribution) pension and leave the remainder invested, but there is no option to take your lump sum and pension at different times from the RM final/average salary pension scheme.

There are currently proposals on the table following the last budget that may change that, but at the moment the exact details of any possible changes haven't been announced yet.

[Surreypostie]

Can you take your pension early and keep working for the company? that is my plan but it is all very confusing. My lump sum forecast is around £36 grand so I assume 5 years early would give me about 27 grand?

[RobertT]

Can you take your pension early and keep working for the company? that is my plan but it is all very confusing.

Yes, it’s called flexible retirement. Details can be found by downloading the relevant brochure: http://royalmailpensionplan.co.uk/55/pensions-brochures" onclick="window.open(this.href);return false;

My lump sum forecast is around £36 grand so I assume 5 years early would give me about 27 grand?

Assuming that’s your NRA60 lump sum and you’re taking it at 55 then you’d take a 5% per year reduction or 25% in total, so your figures sound right. If you’re taking your NRA65 lump sum at 55 aswell then that would be reduced by 50%. Bare in mind that the figures quoted under ‘NRA65 benefits’ on your annual statement assume that you continue working for RM on similar terms to now and paying into your pension until that age, so taking it early will deem those figures to be null and void.

[Surreypostie]

Thanks for the answer, the figure quoted would be my NRA 60 figures, the NRA 65 forecasts about another 30 grand so I assume 15 grand added to the NRA 60 of about 27 grand giving a rough total of 42 grand. There are two pension sums after taking max lump suns. NRA 60 of around 5 grand and NRA 65 arounf 3 grand, assume deduct 25% and 50% respectively and add together?? I'm not expecting to get exact figures here, just trying to understand it.

I wish they would put it in language us mortals understand.

[arnold cheshire]

Thanks for the answer, the figure quoted would be my NRA 60 figures, the NRA 65 forecasts about another 30 grand so I assume 15 grand added to the NRA 60 of about 27 grand giving a rough total of 42 grand. There are two pension sums after taking max lump suns. NRA 60 of around 5 grand and NRA 65 arounf 3 grand, assume deduct 25% and 50% respectively and add together?? I'm not expecting to get exact figures here, just trying to understand it.

I wish they would put it in language us mortals understand.

nra 65 £30 k within 5 years ?

[Surreypostie]

Yes. That is what it says in the little book you get annually and that is why it is confusing, that is the forecast based on working till 65 which is over 10 more years hence 50% reduction.

[arnold cheshire]

nra 60 and nra 65 are not added together they are seperate

[Surreypostie]

I know they are seperate. I just wish to know if I do the 50% reduction on the forecast for the NRA 65 and add the 2 pensions together to give a rough estimate.