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Got to my 60th today! My lump sum from my Bonusplan arrived in two segments today from the RM PP and RM SPP. They deducted 10% off its them current value of a month or so back so they could not over pay me! But will calculate over the next 6 weeks the remainder and I guess pay me that in two parts as well! Still paying into it and don't know whether the Bonusplan goes beyond 31st March or not now. Didn't do the flexiplan but did take out the Added years AVC which I guess will have its final payment this week. Or perhaps last week would be that? Find out tomorrow and/or the following weeks wage slip. And get my first pension payment on the 31st January. Even got my first 60+ concession on a trip to Tate Britian- I'm not proud and intend to get all the discounts I can! But disappointed I will have to wait till 66 to get my bus pass! Boo!
Despite any temptations I intend to stay on a bit longer to max out my NRA65 and Bonusplan payments. And put another years NI into my state pension. Would need to carry on another 4 to 5 years to qualify for my full new state pension which I think is 4 to 5 years too many! So will be about £20 short on that. And I want my 30 year long service award in May! Plus see how any back pay or lump sum pans out. The most frightening thing however is just how quickly 60 arrives despite seemingly being decades away- which of course when I joined RM it was!! Ho Hum...
maisymoo04 wrote:fly if don't mind me asking how many years did you pay into the bonus plan avc I have both bonus plan and flexi plan
I paid into it since 1990. It went through a bad patch a few years later when equitable life went into financle meltdown and I lost 20% of its value when I moved to Norwich Union which was a new AVC option the RM had added by them. I do regret not taking out a flexiplan now as I did not fully appreciate the tax benefits till many years later and this forum (Robert T of course!) But of course if I had started my Bonusplan earlier or used flexiplan I would have lost even more through equitable life! I am still surprised how so few posties I have talked to at my office have got AVCs. Only about 3 out of 50 or more people!! Good luck with yours...
fly-catchers wrote:I did not fully appreciate the tax benefits till many years later and this forum (Robert T of course!)
Thanks for the mention, and happy birthday.
In your original post you said you want to build up your state pension a bit more! I don’t know if you realise, but you only need to earn £5,876 going up to £6,032 for 2018/19 to get a qualifying year for your state pension. In practice, it’s the amount you earn from one employer that counts, rather needing to work for a whole 12 months.
So assuming you’re full time, you’ll only have to work a few months after 6th April to gain another qualifying year.
I hope you enjoy all the discounts that come with being 60.
Very interesting to hear of your experiences up to your 60th as mine is approaching nice and fast. I am slightly different in that I have got both bonusplan and flexiplan. Also I do intend going (ceasing work) at or very close to 60 (in April this year) so I may have a different input for future retirees.
fly-catchers wrote:I did not fully appreciate the tax benefits till many years later and this forum (Robert T of course!)
Thanks for the mention, and happy birthday.
In your original post you said you want to build up your state pension a bit more! I don’t know if you realise, but you only need to earn £5,876 going up to £6,032 for 2018/19 to get a qualifying year for your state pension. In practice, it’s the amount you earn from one employer that counts, rather needing to work for a whole 12 months.
So assuming you’re full time, you’ll only have to work a few months after 6th April to gain another qualifying year.
I hope you enjoy all the discounts that come with being 60.
Thats interesting Robert that you don't need to pay in for a full year to get another years pension. Currently I am quoted as about £136 and expect that to increase to about £140 from April plus any increases from last years September CPI of 3%. But its good to hear that I could continue to about July/Aug and I have done enough to add another year to the State pension. Yes I intend to check all the places I go for any possible concessions! And have my free mailrail ride before I go as well!!
maisymoo04 wrote:what I want to no is why is bonus plan only allowed £2.88 is it on a contribution and royal mail match it . cant you up bonus plan
The Bonusplan which is only for Section C members is based round the Lower Earning deduction of £3328 which is deducted from our wages and which the reduced amount gives us the figure the DB pension uses. It was frozen to this amount in about 1999 so it will reamain at £2.88 for our contribution and roughly £1.94 for the RM's contribution. Their amount slowly goes down as our wages go up. When I first started Bonusplan it was about £2.56 for both mine & RM contribution
