Joining pension

[stodgy88]

hello ,worked for over 30 years in delivery,and took my royal pension early,so I could go part time, came out of pension then (mistake ?) ,but now have a few quid spare every week,so wondered if any point (if allowed ) to rejoin and try and pay extra to top up my benefits , I have around 7 years to work,thanks in advance.

[RobertT]

You won’t be able to rejoin the RMPP because that closed to new entrants in 2008 and has now closed to future accrual altogether.

You will only be able to join the DBCBS if you have 5 years’ service including at least 4 years continuous service at the standard contribution level in the RMDCP.

If you’re not already in the RMDCP, then you should be able to join that. But I would have thought you would have been auto-enrolled into the RMDCP at some point, so I assume you chose to opt out of that aswell?

[stodgy88]

hello thanks for reply so I assume you chose to opt out of that aswell? yes ,but as I near retirement,looking at best way to invest any spare cash cheers

[RobertT]

The RMDCP is you’re only option at the moment, but you should be able to join the CDC scheme when/if that gets the go ahead.

The RMDCP is a good way of saving money because of the contributions off RM and also the benefits of tax relief and salary sacrifice(PSE).

For example: If you pay in the top rate of 6% and that equates to a gross of £20 per week, that will only actually be costing you £13.60, with £4 being taken off your income tax bill for tax relief and £2.40 being taken off your NIC’s for PSE. Plus you’ll be getting another £33.33(10%) off RM too.

So in that example, you’ll be getting just under £40 per week in ‘free money’.

Info on the RMDCP can be found here.

General info on DC pension schemes is here.

[stodgy88]

Brilliant stuff Robert thanks if I decide to join RMDCP whats my next step thanks

[RobertT]

Fill in the 'choices' form from the link i provided in my last post, or contact the Zurich RM Team, details via the same link.

[stodgy88]

thanks again.