VR and Pension. Leaving the business before 55.

[jazzyd65]

Hi,

I am aged 50 years old, with 30 years service. I am considering taking VR next year, when the new packet sorting machine is installed at our mail centre. What I would like to know is if I leave the business, in five years time when I am 55, can I still apply to take my pension and lump sum, or will it be frozen until I am 60 or 65.

I have asked some work colleagues and got conflicting answers. I would appreciate if someone could give me a definite yes or no.

Thanks.

[RobertT]

By law everyone can usually access their pension from age 55 whether it is a salary based works scheme or a separate personal pension, although in practice it does depend on the individual scheme rules and whether the company allows it. But as far as I know there are no such rules within the RM pension scheme.

However if you take it before the schemes normal retirement age an actuarial reduction would apply of normally around 5% year, so taking all of your pension at 55 would see your NRA60 benefits reduced by 25% and your NRA65 benefits reduced by 50%.

The fact that you’ve left employment won’t affect your ability to take it at that age.

As a side note and I know it won't affect you personally, but the minimum age at which people will be able to take their pensions is proposed to increase to 57 in 2028.

[stroller]

jazzyd65,

I was in your situation in the summer I am 53 and was offered EVR in July, after thinking long and hard turned it down, and decided to stay and sign for a new job in the re-sign, think long and hard about it although I turned it down I regret it everyday since, they are after cutting a few more jobs in our office soon but if they offer it to me again on the same terms I would not hesitate to go this time as I am 18 months from calling in my pension at 55, these EVR offers will not be around soon

Hope this helps


Stroller