55 this year help to work out my pension

[stroller]

Hi everybody,

I am 55 in August and plan to call in my pension, can anybody on here work out roughly what I will get if I give my figures from my last pension statement, I know there are a few pensions experts on here.

Cheers

[savo]

You can write to them 3 months before 55th birthday.

I recently did mine ( NRA60 ) - the latest figures I had on taking it at 60 were around 3500 per year ( including the supplement )

Taking it at 55 I took max tax free lump sum - nearly £14K, and pension is just over £2K a year including supplement. ( I did also have AVC which amounted to only around £1K, but would have increased monthly payment slightly )

I needed the lump sum for family reasons, as I am still working I will save the monthly pension payments to build up a replacement lump sum - I know I will pay income tax on the monthly payment, not sure whether NI will also be due on it ?

[stroller]

What is the supplement?

[RobertT]

Hi everybody,

I am 55 in August and plan to call in my pension, can anybody on here work out roughly what I will get if I give my figures from my last pension statement, I know there are a few pensions experts on here.

Cheers

It’s quite simple. Based on my section c statement, you have a ‘total pension’ figure which is all of your pension entitlement to date. All you need to do is subtract your NRA60 amount and take 25% off that. What you’re left with is the NRA65 pension you’ve accrued to date, which you will need to reduce by 50% if you’re planning on taking that at 55 aswell.

If you’re a section A/B member, your lump sum will need to be reduced accordingly.

You could also use the ‘estimated pension at 65’ amount, as suggested in my post here: http://www.royalmailchat.co.uk/communit ... 27&t=72449" onclick="window.open(this.href);return false;, but as that is just an estimate of what you might get at 65 assuming you work until 65 on the same wages as now, it is unlikely to be as accurate.
Also bear in mind that the RMPP in its current form is probably going to close in 2018, so figures relating to after that date won’t apply anyway.

[RobertT]

You can write to them 3 months before 55th birthday.

I recently did mine ( NRA60 ) - the latest figures I had on taking it at 60 were around 3500 per year ( including the supplement )

Taking it at 55 I took max tax free lump sum - nearly £14K, and pension is just over £2K a year including supplement. ( I did also have AVC which amounted to only around £1K, but would have increased monthly payment slightly )

I needed the lump sum for family reasons, as I am still working I will save the monthly pension payments to build up a replacement lump sum - I know I will pay income tax on the monthly payment, not sure whether NI will also be due on it ?

National Insurance shouldn't be payable on pension income.

[RobertT]

What is the supplement?

It’s an ‘extra’ payment members of section C of the RMPP get between taking their pension and leaving RM and reaching state pension age. It is not paid if you stay in RM employment after taking your pension.

[savo]

You can write to them 3 months before 55th birthday.

I recently did mine ( NRA60 ) - the latest figures I had on taking it at 60 were around 3500 per year ( including the supplement )

Taking it at 55 I took max tax free lump sum - nearly £14K, and pension is just over £2K a year including supplement. ( I did also have AVC which amounted to only around £1K, but would have increased monthly payment slightly )

I needed the lump sum for family reasons, as I am still working I will save the monthly pension payments to build up a replacement lump sum - I know I will pay income tax on the monthly payment, not sure whether NI will also be due on it ?

National Insurance shouldn't be payable on pension income.

Yep that was my thoughts also Robert, I am self-employed so will speak to my accountant to clarify.

[stroller]

Thank you everybody for your replies, you have probably seen me post before about VR or taking my pension at 55.

The reason I am asking is to get a rough idea what I am likely to receive at 55, I intended to get to 55 and take EVR if offered with an enhanced pension etc etc, but the new MTSF agreement has taken away the perks of taking it at 55, so I will now defo go if it is offered again in my office before I get to 55 in August.

Will I get a pension supplement if I leave under VR and call my pension in at 55 I am in the A/B scheme?

[RobertT]

Thank you everybody for your replies, you have probably seen me post before about VR or taking my pension at 55.

The reason I am asking is to get a rough idea what I am likely to receive at 55, I intended to get to 55 and take EVR if offered with an enhanced pension etc etc, but the new MTSF agreement has taken away the perks of taking it at 55, so I will now defo go if it is offered again in my office before I get to 55 in August.

Will I get a pension supplement if I leave under VR and call my pension in at 55 I am in the A/B scheme?

No, only section C members get the supplement!

[stroller]

RobertT

Are you a section C member if you start after 1987? not very clued up on all this pension business, but being an A/B member are you compensated in another way seeing as you don't get the supplement?

[RobertT]

RobertT

Are you a section C member if you start after 1987? not very clued up on all this pension business, but being an A/B member are you compensated in another way seeing as you don't get the supplement?

Section C members have an amount known as the Lower Earnings Deduction taken off their pay before pension contributions are worked out. This is £3,328 per year which makes section C an inferior pension to sections A/B. The supplement is a way of closing the gap between the two.

So there is no reason for section A/B members to be compensated at all because they already have a better pension.

[stroller]

RobertT

Thanks for explaining that, a detailed and as usual first class reply

[RobertT]

RobertT

Thanks for explaining that, a detailed and as usual first class reply