pensions

[osgoody1970]

just had my sons protracted pension forecast through the door, he will have 40 odd years service at 60, yet they are forecasting a figure of £80 a week!!! no where near what I get and i'm just short of 35 years service, surely the new pensions are not that bad? are they?

[RobertT]

Your pension is a defined benefit scheme which is based on how much you earn and your length of service. While your sons pension is defined contribution scheme, which is based on how much he pays in and the returns on the investments.

With a DC scheme the onus is on the individual to be proactive and put as much as possible into it, rather than just the standard amount, plus the employer contributions. But ultimately if you put peanuts in, you’ll get peanuts out.

Although DC pension statements often show what you would get in 'todays money' taking inflation into account, rather than what you'll actual money terms.

[Bernardson]

It's unlikely that your sons retirement age will be sixty.
The retirement age has been steadily increased there is currently a government commission which could recommend that we work until we're seventy five before receiving state pension.
Meanwhile the first thing directors of company's such as Royal Mail do on appointment is to fix their exit package!

[Judgee]

Got my annual pension statement today and I will get £45 a week having paid in for 30 years by time I retire. What made me laugh the most was that they took my money and invested it as they do, and this year it lost £500!

[Darren Bent]

I thought we get full salary in pension if you do 40 years. so if you do 30 years you will get 75% of full pension.

[RobertT]

I thought we get full salary in pension if you do 40 years. so if you do 30 years you will get 75% of full pension.

If only! Unfortunately that has never been the case and with the impending closure of the RMPP and everyone being put into the inferior RMDCP, never will.

Full details of how your RMPP pension is worked can be found in the library section/s of the pensions website: http://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false;

[heapsy]

A full pension is now 45 years of contributions. Not 40. I do remember one bloke who started in 1957 and retired in 1997 who got a full pension, but that was before the changes of course.