Pension illustration

[number one]

Well I’ve just received my pension illustration and my £40k lump sum seems not to be an option anymore so where has my money gone?

[RobertT]

Are you in section C? The previous two years section C pension illustrations didn't have a lump sum figure on them either.

But you can work out roughly what it's likely to be using the figures on your illustration and the info on page 12 of your plan guide.

[Dorset Plodder]

I was just about to suggest he contact you Robert T

I expect you'll have a few queries from people over these latest illustrations? I don't consider myself Thick (although others may) but I'd have thought greater minds than mine would have, by now, found a clearer way of illustrating just what Postman Pat would get a week when he Retires. I understand that there's a lot of variables but these illustrations have been personalised, and I still don't think they're that clear.

[RobertT]

Yes there usually are a few queries at this time of year, but most of the time it's fairly easy for people to find out the answers from info that's available online or from booklets we've been sent.

I've never really understood why the figures on the illustration aren't split into NRA60 and NRA65, rather than final salary and CSDB, which would make it far easier to understand. They are apparently working on that.

[Rommagic]

Are you in section C? The previous two years section C pension illustrations didn't have a lump sum figure on them either.

But you can work out roughly what it's likely to be using the figures on your illustration and the info on page 12 of your plan guide.

Page 12?

[wacko74]

Yes it's that time when Robert T gets swamped with requests for explanations!

Thanks in advance Robert for the help and guidance you've offered to everyone regarding pensions and shares... with your knowledge and ability to clearly explain the intricacies of these issues you really are wasted as a mere postie!

I still can't understand even the basics of the illustration, the latest figures I've got on page 3 are-

(Middle black box) - Total pension to March 2019 =£3,748
(Bottom black box)- Total pension supplement to march 2019 =£747
(Bottom brown box)- Cash balance fund sum to March 2019 =£3,337

Based on these figures just what is the actual amount I'll be getting at 65 and what do the different figures mean?
What's the difference between my ''total pension'' and my ''cash balance lump sum'' and what is the £747 ''supplement''? Is that a monthly or annual supplement?

Finally do these figures sound vaguely correct for someone who's been paying an average of around £15 per week in since 2001?

[RobertT]

Page 12?

Yes, page 12 of your plan guide. You should have received the latest version about 12 months ago and it's also available to view in the library section of the RMPP website. It tells you how the scheme works!

[RobertT]

Yes it's that time when Robert T gets swamped with requests for explanations!

Thanks in advance Robert for the help and guidance you've offered to everyone regarding pensions and shares... with your knowledge and ability to clearly explain the intricacies of these issues you really are wasted as a mere postie!

I still can't understand even the basics of the illustration, the latest figures I've got on page 3 are-

(Middle black box) - Total pension to March 2019 =£3,748
(Bottom black box)- Total pension supplement to march 2019 =£747
(Bottom brown box)- Cash balance fund sum to March 2019 =£3,337

Based on these figures just what is the actual amount I'll be getting at 65 and what do the different figures mean?
What's the difference between my ''total pension'' and my ''cash balance lump sum'' and what is the £747 ''supplement''? Is that a monthly or annual supplement?

Finally do these figures sound vaguely correct for someone who's been paying an average of around £15 per week in since 2001?

Middle black box = total pension earned up to 31st March 2018, some of which will have an NRA of 60 and some of 65.
Bottom black box = the supplement you've earned up to 31st March 2018. Only section C members get the supplement and only if you've left RM employment and until state pension age.

The above figures are your annual income and are increased each year by inflation until you take them and during payment.

Bottom brown box = the lump sum you've been building up since 1st April 2018, which is paid out along with your NRA65 benefits.

I can't really comment on whether the figures are correct because it'll depend on your own circumstances like pensionable pay, hours worked, etc. I see no reason why they'd be wrong, but bear in mind what it says on page 2 - "the figures are only a guide" ,etc.

[Rommagic]

Total pension up to march 2019.£7,056.
Total pension supplement £1,094
Cash balance fund cash sum £4,590
Annual pension to wife if I die is £3,533.
Dec 2040 I be 60.
Total final salary 8 years and 13 days.
Csdb blocks 10
Cash balance 1.

How do I work out lump sum ?at 60 in 2040.Also 2045 I be 65.

[RobertT]

The first thing to realise is you stopped building up any more pension under this scheme on 31st March 2018. Everything you've accrued up to that date will just go up with inflation until you take it.

The Cash Balance(DBCBS) is a lump sum to be paid out with your NRA65(2012-2018) benefits. But that scheme will only be in place until the new CDC pension is implemented(assuming it is).

The CDC scheme is a totally different thing and separate from what you've already built up and currently accruing via the DBCBS. What you get from CDC is just targeted – there's no guarantees!

In practice you can guestimate what you might have in 20 or 25 years time, but without a crystal ball, it's virtually impossible to be accurate.

[wacko74]

Thanks RobertT, yeah I realise it's all ''only a guide'' etc etc

Rommagic - You're a similar age to me, but seem to have a considerably higher forecast, can I ask approximately how many years you've been paying in and how much per week? (I realise as RobertT says there are other variables but it would still give a rough comparison)

[Steve_claret]

I've never really understood why the figures on the illustration aren't split into NRA60 and NRA65, rather than final salary and CSDB, which would make it far easier to understand. They are apparently working on that.

Robert, so am I right in thinking that NRA60 is roughly speaking all of the Final Salary figure and a small part of the CSDB figure?

[RobertT]

I've never really understood why the figures on the illustration aren't split into NRA60 and NRA65, rather than final salary and CSDB, which would make it far easier to understand. They are apparently working on that.

Robert, so am I right in thinking that NRA60 is roughly speaking all of the Final Salary figure and a small part of the CSDB figure?

Yes.
NRA60 relates to service up to 31st March 2010, which includes the final salary figure up to 2008 and the first 2 years of the CSDB figure.

So with a bit of simple maths it's not too difficult to work out ballpark NRA60 and NRA65 figures.

[Rommagic]

Thanks RobertT, yeah I realise it's all ''only a guide'' etc etc

Rommagic - You're a similar age to me, but seem to have a considerably higher forecast, can I ask approximately how many years you've been paying in and how much per week? (I realise as RobertT says there are other variables but it would still give a rough comparison)

19 years at roughly £28 a week.

[wacko74]

Thanks RobertT, yeah I realise it's all ''only a guide'' etc etc

Rommagic - You're a similar age to me, but seem to have a considerably higher forecast, can I ask approximately how many years you've been paying in and how much per week? (I realise as RobertT says there are other variables but it would still give a rough comparison)

19 years at roughly £28 a week.

Thanks for that, so same number of years as me but considerably higher contributions, makes the figures look about right.