Just had a pension projection

Keenzy · Post by **Keenzy** » 13 Oct 2016, 13:58

If you have become a postie in the last few years you might be surprised just how little you are going to receive in your pension. I am 46 and started working for Royal Mail in June 2013. By paying in £12.73 a month and the company paying £22.27 my projection (based on 2% inflation) is £3.16 per week if I retire at 55. If I stay on until I am 65 it will be around £27 per week.

As I want to retire before my body gives up completely then 65 is out of the question. As the £3 wont even buy me a pint by the time I am 55 I am thinking about cancelling my contribution.

Do I just let Zurich know that I want to cancel my contributions or do I let HR know?

Thanks

ScousePostie · Post by **ScousePostie** » 13 Oct 2016, 14:12

£12.73 a month! I paid £20.09 just this week. Unsure what the company has paid, I'll have to take a look. Are you sure this is correct?

terry2972 · Post by **terry2972** » 13 Oct 2016, 14:22

Why don't you put 6% in they put 9% in so for every 100 you earn 15 is put away at a cost of 4.80 to you
Then when you can take it as a lump sum 25% tax free and remainder taxed I think it's not to bad it's effectively a 9% pay rise from rm

Post by **RobertT** » 13 Oct 2016, 16:03

Keenzy wrote:If you have become a postie in the last few years you might be surprised just how little you are going to receive in your pension. I am 46 and started working for Royal Mail in June 2013. By paying in £12.73 a month and the company paying £22.27 my projection (based on 2% inflation) is £3.16 per week if I retire at 55. If I stay on until I am 65 it will be around £27 per week.

Yes, if you put peanuts in, you can only expect to get peanuts out!

As I want to retire before my body gives up completely then 65 is out of the question.

If you’re 46 now, you won’t get your state pension until at least 67.

As the £3 wont even buy me a pint by the time I am 55 I am thinking about cancelling my contribution.

Then what are you going to live on in retirement?

As Terry2972 has said, you can put in 6% of your pay which in turn attracts 9% off RM. Infact you can put in as much as you want, but 9% is the maximum RM contribution.

Plus your contributions benefit from tax relief and PSE(assuming you qualify), so a £10 per week gross payment for example, only actually costs you £6.80 and you’re getting another £15 off RM too. Why would you not want to get all that free money?

As the Zurich pension is defined contribution there are a number of options when it comes to taking your money. This will give you more info: https://www.moneyadviceservice.org.uk/e ... on-schemes" onclick="window.open(this.href);return false;