Taking lump sum at 55

[Paulo1963]

I have 32 years service and am 57. I’ve heard information about taking part of my lump sum and investing it as it no longer increases while in my pension pot. Can anyone give any clarity on this?
Thanks

[RobertT]

You have a defined benefit pension which is based on your earnings and length of service, DB is generally regarded as the best type of pension going.

By the sound of it, you're in section C.

Both your pension and maximum lump sum will be increasing each year with inflation, it's what DB pensions do!

You recently received your 2020 statement which should show higher figures than 2019's, so surely that gives you an answer to your question?

It is possible to transfer your RMPP(post 2012 benefits) into a defined contribution pension, which you would be able to invest as you wish.
But whether you'd be able to keep pace with the index linked pension for life that you'll get from RM, is debatable.

More info on how your pension works can be found on the website: https://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false;. Pay particular attention to the media library as that includes guides to how your pension works.

[freespeech]

I have 32 years service and am 57. I’ve heard information about taking part of my lump sum and investing it as it no longer increases while in my pension pot. Can anyone give any clarity on this?
Thanks

That isn't the case......in general terms you can take 25% of your "pot" tax free. Every year you stay and not draw your pension it will increase so the 25% will, by definition, also increase. There are some exceptions but, as I said, in general terms leave it if you don't need it as it will grow. The same isn't guaranteed for the new pension which is yet to be introduced.

[Paulo1963]

Thankyou. I thought it sounded a bit suspicious