Deferred Pension at 55 Help

[ttsdriver]

Hello and Merry Christmas to you all,

I intend taking my deferred Section C benefits next year when I am 55.

Attached is my latest benefit statement, can anyone give me a rough idea what the maximum lump sum I could expect and the annual pension? I also have a small AVC pot worth about £4k.

Thanks for your help.

Sal

[RobertT]

The RM pension is split between NRA60(service up to 31st March 2010) and NRA65(service from 1st April 2010).

So without knowing how much of your pension relates to each part, it's virtually impossible to give you even a ballpark figure.
Do you have previous statements with those figures?

But taking any of it earlier than Normal Retirement Age(NRA) will mean a 5% reduction. So taking it all at 55 means a 25% hit on your NRA60 and a 50% hit on your NRA65.

Section C members don't get a lump sum as standard, but have the choice to give up some pension to get one. The lump sum will be reduced for early payment by the same percentages as the pension.

So unless you know roughly what the split between NRA60 and NRA65 is, in my opinion, you'll be much better off waiting until you get your quote.

[ttsdriver]

That statement is for my NRA 60 benefits, I wish to convert 25% into a lump sum and take the rest as pension.

I have assumed I deduct 25% off for taking it early, then take 25% off the balance to multiply by the unknown but assumed to be around 18-22 times commutation figure to calculate my max lump sum then the balance will be my annual pension.
But what I am unsure of is which figure on the statement is the one to start the calculation with ie. do I include the pension supplement?

Thanks again

[RobertT]

Take as look at page 12 of the 'member guide to benefits' here: https://www.royalmailpensionplan.co.uk/ ... ts/library" onclick="window.open(this.href);return false;

To work out rough figures for your benefits at 55 you'll need to take off 25% before you work out the lump sum, so:

10,417 x 20 = 208,340 - 25% = 156,255 + 4,000 = total pot value of 160,255

Therefore max lump sum = £40.063
Yearly pension = £6.009

Edited as I'd wrongly taken 25% from the £4k AVC pot.

[ttsdriver]

Thanks for your help Robert

[FAB]

Pension increase amount box not seen that before. Too big to relate to the annual RPI increase..

[NorthernBoy]

That statement is for my NRA 60 benefits, I wish to convert 25% into a lump sum and take the rest as pension.

I have assumed I deduct 25% off for taking it early, then take 25% off the balance to multiply by the unknown but assumed to be around 18-22 times commutation figure to calculate my max lump sum then the balance will be my annual pension.
But what I am unsure of is which figure on the statement is the one to start the calculation with ie. do I include the pension supplement?

Thanks again

When you get your actual figures through can you post them, as I think a lot of members would be interested to see exactly what the reduction is. I think the commutation estimate of 18-22 is about right.

Many thanks.

[rambo1]

Must have put a fair few yrs in for that pension.

[ihatedogs]

Must have put a fair few yrs in for that pension.

Give or take a couple of hundred quid on both the lump sum and annual pension, that's just about the same as my pension which I took at 55 after 24 years service.

[ttsdriver]

Must have put a fair few yrs in for that pension.

Give or take a couple of hundred quid on both the lump sum and annual pension, that's just about the same as my pension which I took at 55 after 24 years service.

Glad to hear that the figures seem about right, that's roughly the amount I had worked it out as. I did 22 years, the last 17 on nights and the last 10 or so on the HGVs.

I have no idea what the pension increase amount is either, hopefully it's not an error!