Pension at 57

[Stevefern123]

I have recently been ill health retired from Royal Mail, I was a postman for 27 years and have paid into the pension scheme since I started.
I can’t get my head round the pension amounts , I’ve recently asked for a pension estimate from both the pre 2012 and post 2012 pensions.
Today I received a letter from the Rmpp stating that my NRA60 pension would be £223.49 per annum!!! How can this possibly be right when over 27 years I’ve paid in thousands of pounds.
Am I being totally stupid in not understanding this? Can anyone help?.
Many thanks

[Steve_claret]

What estimates have you asked for exactly? You mention asking for just your NRA60 estimates which is anything you have paid in up to 2010. Don't forget you are also taking this 60 pension 3 years early so will give up roughly 15% by doing this.

To be honest £223 per annum sounds about right for just the RMPP part of the 60 pension as the bulk of your 60 pension will be Final Salary which closed in 2008 plus 2 years of CSDB which is now in the RMSPS (pre 2012) managed by Capita. Have you asked Capita for their estimate yet? I don't think the PSC will do it on your behalf so if you have only contacted the PSC then they only deal with RMPP now which will be why the amount quoted is low.

[RobertT]

I have recently been ill health retired from Royal Mail, I was a postman for 27 years and have paid into the pension scheme since I started.
I can’t get my head round the pension amounts , I’ve recently asked for a pension estimate from both the pre 2012 and post 2012 pensions.
Today I received a letter from the Rmpp stating that my NRA60 pension would be £223.49 per annum!!! How can this possibly be right when over 27 years I’ve paid in thousands of pounds.
Am I being totally stupid in not understanding this? Can anyone help?.
Many thanks

The RMSPS pays out the pension benefits you built up to 31st March 2012, which includes the vast majority of your NRA60(up to 31st March 2010) benefits.

The RMPP is responsible for paying out inflationary increases on your RMSPS benefits that continued to build up after 2012. Which is your £223, presumably reduced by around 15% for taking it 3 years early.

When you get your RMSPS quote, it will include the rest of your NRA60 pension.

[Stevefern123]

Hello, thank you for your replies. I have also applied to the RMSPS but I am still waiting for a reply (2 weeks plus)
It may be that I can wait until I’m 60 but I was just trying to work out roughly what my yearly pension would be so I could estimate the weekly amount, so I could work out my options.
Having been told what a good pension scheme the Royal Mail is I was surprised at the RMPP estimate but now you have explained it makes a bit more sense.
Many thanks Steve

[stephen500]

Hello, thank you for your replies. I have also applied to the RMSPS but I am still waiting for a reply (2 weeks plus)
It may be that I can wait until I’m 60 but I was just trying to work out roughly what my yearly pension would be so I could estimate the weekly amount, so I could work out my options.
Having been told what a good pension scheme the Royal Mail is I was surprised at the RMPP estimate but now you have explained it makes a bit more sense.
Many thanks Steve

Isn't this digusting that our pension schemes have become so confusing to every one, that this poor postman thought his pension would be worth only around £200 after 27 years service.
None of us should have to go through this.
Our pension schemes should be clearer and not put the fear of God into individuals.
If you have any more questions, ask Robert T again, as he explains it very clearly and in much plainer language.
As said you have the majority of your NRA60 with RMSPS (administred by Captia) and a small amount with RMPP and certainly will be worth a lot, lot more than the 200 odd pounds you were worried about.
Your NRA65 will be with RMPP and I think, although I am not totally sure, a little of this by RMSPS.
All the best with retirement and I hope to join you at the end of the year.

[Steve_claret]

I agree the RM pension schemes are an absolute mess now. My wife is a teacher and her scheme is dead straightforward. One scheme and one calculation as she is still Final Salary and will be until she retires.

This forum is invaluable and RobertT's input is pure gold. I was the same up to about 2 years ago and knew absolutely nothing about RM pensions even though I had been paying in for near on 40 years. The age of 60 creeps up on you and suddenly you think, Oh s**t, I'm going to be drawing my pension in 12 months time and know absolutely nothing about how much I should be getting. With a bit of searching and putting the time in everything you need to know when you come to draw your pension is in here. Good luck.

[RobertT]

I would agree with the above comments!

Our pensions are a complete and utter shambles – a bit like RM in general!
Many people don't take much notice of their retirement until they're in their 50's.
It can be very difficult to decipher the annual statements and other documents.
Nothing seems to be written in plain English or set out in a sensible or logical way.

The various changes to our pensions over the last 12 years have made them hard to understand, but it's the trustees who are responsible for our annual illustrations, etc and they simply haven't kept up with those changes. Hence the reason so many people don't understand them.

It shouldn't really be up to me, or any of the other valuable contributors on this forum to do the trustees job for them!