Hi
I started working for RM last week as a part-timer (20 hours per week plus overtime)
I'm not really sure what is best to do regarding the RM pension
I have sent off the form to start my RM within the first 12 months
I did work for 2 years for Angard but unfortunately, this pension pot can't be transferred to RM
I do have a personal pension which I pay £250 per month into so I will transfer Angard/Now Pensions pot into that
However, I'm a bit uncertain about what to do with the RM one as I'm not a Spring Chicken (aged 41)
With it being within 12 months my contributions are fixed at a certain percentage so I can't do anything increasing my deductions in that regard
Does anybody have any general advice about the RM pension scheme?
Thanks in advance
Paul
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (Updated 2021)... HERE
ANNOUNCEMENT : PLEASE BE AWARE WE ARE NOT ON FACEBOOK AT ALL!
Pension new starter
-
paulus103
- MAIL CENTRES/PROCESSING
- Posts: 216
- Joined: 19 Jan 2018, 01:55
- Gender: Male
-
RobertT
- EX ROYAL MAIL
- Posts: 6645
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Pension new starter
The general advice with any workplace pension is always sign up and pay in at least whatever it takes to get the maximum employer contribution.
In your first year of RM employment I think your contributions are fixed at 5% with 3% from RM. But you also benefit from tax relief and salary sacrifice(RM call it PSE), which means each £1 gross contribution from you only actually costs £0.68.
So for example, if you're paying in a gross of £10 per week(the amount on your payslip) that would only cost you £6.80 because your income tax gets reduced by £2 and you NIC's by £1.20. Plus you'll also get £6 from RM. Meaning you're getting £9.20 in 'free money' each week.
It might not be much, but every bit counts.
I think there are around 12 funds to choose from, but this link will tell you more: https://www.scottishwidows.co.uk/save/royalmaildcplan/" onclick="window.open(this.href);return false;
In your first year of RM employment I think your contributions are fixed at 5% with 3% from RM. But you also benefit from tax relief and salary sacrifice(RM call it PSE), which means each £1 gross contribution from you only actually costs £0.68.
So for example, if you're paying in a gross of £10 per week(the amount on your payslip) that would only cost you £6.80 because your income tax gets reduced by £2 and you NIC's by £1.20. Plus you'll also get £6 from RM. Meaning you're getting £9.20 in 'free money' each week.
It might not be much, but every bit counts.
I think there are around 12 funds to choose from, but this link will tell you more: https://www.scottishwidows.co.uk/save/royalmaildcplan/" onclick="window.open(this.href);return false;
Links to all RM pension related websites are here
-
Hawkey99
- Posts: 568
- Joined: 23 Oct 2011, 11:19
- Gender: Male
Pension new starter
Save as much as possible.
Start as soon as possible.
Pay yourself first (i.e. have it taken out of your pay)
Every £ saved now compounds in interest over the years and ultimately means you can retire earlier......
Saving regularly and early really is life changing over a long period of time.
Good Luck
Start as soon as possible.
Pay yourself first (i.e. have it taken out of your pay)
Every £ saved now compounds in interest over the years and ultimately means you can retire earlier......
Saving regularly and early really is life changing over a long period of time.
Good Luck
-
paulus103
- MAIL CENTRES/PROCESSING
- Posts: 216
- Joined: 19 Jan 2018, 01:55
- Gender: Male
Pension new starter
Thanks very much for the advice :)
-
lordthornber
- Posts: 94
- Joined: 27 Jul 2016, 11:58
- Gender: Male
Pension new starter
Some advice you may find useful is this. Appreciating everyone has a different attitude to risk but it's generally reasonable to choose a more "aggressive" fund to invest in at your age.
As retirement nears, reduce your exposure to volatility. I left RM in '04 but recently took my pension, hence the retained interest on here. I can only assume you have the option to choose a more or less aggressive fund. Good luck.
As retirement nears, reduce your exposure to volatility. I left RM in '04 but recently took my pension, hence the retained interest on here. I can only assume you have the option to choose a more or less aggressive fund. Good luck.
-
lordthornber
- Posts: 94
- Joined: 27 Jul 2016, 11:58
- Gender: Male
Pension new starter
Some advice you may find useful is this. Appreciating everyone has a different attitude to risk but it's generally reasonable to choose a more "aggressive" fund to invest in at your age.
As retirement nears, reduce your exposure to volatility. I left RM in '04 but recently took my pension, hence the retained interest on here. I can only assume you have the option to choose a more or less aggressive fund. Good luck.
As retirement nears, reduce your exposure to volatility. I left RM in '04 but recently took my pension, hence the retained interest on here. I can only assume you have the option to choose a more or less aggressive fund. Good luck.