Pension query

ballee · Post by **ballee** » 29 Jan 2018, 19:17

Can someone advise me, my mate who has 26 years service and is aged 59 is intending to work
Until 66 when he will receive his state pension. He believes that his Royal Mail pension will amount
to £350 per week and is budgeting towards this. He has taken any lump sum he had coming so everything is based
on his retirement pension. I cannot see how his pension could be so high, he has paid no extra to increase it. Other mates who have left with long service are getting no where near this.

I have tried to advise him but he is adamant this is what he will have. Bearing in mind the state pension is roughly £155 this will give him an income when retired of £500 plus each week . Can this be right.

BAILEY21 · Post by **BAILEY21** » 29 Jan 2018, 19:54

I have 34 years in,my latest illustration shows around £40,000 lump sum, and a monthly pension of £460

Post by **97gaz** » 29 Jan 2018, 19:59

deltaforce · Post by **deltaforce** » 29 Jan 2018, 20:07

It depends on what his pensionable pay is. My pension at 66 including two rm pensions and state pension would just be about this figure with 38 years service. £350 that is

ballee · Post by **ballee** » 29 Jan 2018, 20:34

Thanks guys I thought it was around this, I hope my mate will take this on board. I cannot understand why he thinks he will get the pension he thinks he will. Our last manager went 5 years ago after 35 years and finished up with around £270 before tax. The problem here is my mate is planning on £350 plus state pension and going to spend accordingly.

plaguelift · Post by **plaguelift** » 29 Jan 2018, 21:28

Sounds as though he’s read something wrong somewhere or mis-understood. He might be getting £350 a month rather than £350 a week.

Post by **RobertT** » 30 Jan 2018, 04:39

As others have said, it sounds to me as if he’s mis-reading something along the way.

And with being aged 59 and with a long time contracted out of the state second pension, there's a chance he might not get the full rate(currently £159.55) of the state pension either. I suggest he gets himself a state pension statement to make sure.

Rumple · Post by **Rumple** » 30 Jan 2018, 08:32

RobertT wrote:As others have said, it sounds to me as if he’s mis-reading something along the way.

And with being aged 59 and with a long time contracted out of the state second pension, there's a chance he might not get the full rate(currently £159.55) of the state pension either. I suggest he gets himself a state pension statement to make sure.

contracted out?
Am I? How do I know/find out?
I was presuming I would receive the full state pension. What can I do if I am contracted out to receive the full state pension?
Sorry if I sound a bit green but pensions go way over my head.

stevepostman · Post by **stevepostman** » 30 Jan 2018, 10:40

You need to register and check here. Enter you name and national insurance number and youll get a statement online regarding your national insurance contributions and how much your state pension worth curently..

Post by **RobertT** » 30 Jan 2018, 13:39

Rumple wrote:[ contracted out?
Am I? How do I know/find out?
I was presuming I would receive the full state pension. What can I do if I am contracted out to receive the full state pension?
Sorry if I sound a bit green but pensions go way over my head.

Everyone in the RMPP(but not the RMDCP) was contracted out of the second state pension until April 2016. That meant we were paying a reduced amount of NIC’s, but in return we were building up at least as much in RM pension than we would have got from the state.

When contracting out ended, we all started to pay a higher rate of NIC’s – 12% up from 10.6%, but in return we started to gain more state pension aswell.

State pensions are very individual based on your own work history, so the only way to be sure what you’re likely to get is to get yourself a forecast. See the link in my previous post.

If you’re likely to be short of the maximum, it’s possible to pay voluntary NIC’s. if you do that, you’ll get your money back after around 3-4 years of recieving the state pension.