60 next year.

[tansorboy]

I am in section F. I have around 18k in my old DC pension pot which I am thinking of taking as 25% lump sum and 75% pension (which won’t be much) but if I keep working with RM, can I keep contributing to the new CDC pension for a few years, or do I have to take both at the same time?

[RobertT]

The rules with your DC pension and your section F DBCBS pot are fairly similar – you can take a maximum 25% as tax free cash with the rest being taxed at your marginal rate. Whether you actually pay tax will depend on what other income you have at the time.

Although as the DBCBS in the case of section F has an NRA of 65, accessing it before then will see a reduction. See the section F guide for more info: https://www.royalmailpensionplan.co.uk/ ... v2.0sp.pdf
Transferring it to a DC scheme might therefore be an option to consider.

A £13,500 pot (after the 25% tax free) would currently only give you an income of around £550 per year based on a single life, level income. Less if you want inflationary increases and/or spouses benefits on your death.
But you also have your DBCBS pot to factor in, giving you more to play with!

Could drawdown be a better option with these two pots, and at a later date perhaps?

Here's some general DC pension info and what you can do with your money: https://www.moneyadviceservice.org.uk/e ... on-schemes

In the original plans, it stated that everyone with at least 1 years service would be auto-enrolled into the CDC scheme when that is implemented. I see no reason why you wouldn't be.
The latest guestimate as to when CDC will start, is maybe the second half of 2021????

So you will have:

A DC pot = £18k
A DBCBS pot =£?
CDC scheme providing a pension and a lump sum.

More info on the proposed CDC scheme is here: https://www.myroyalmail.com/2018pensionreviewqanda

[tansorboy]

Many thanks Robert. If I qualify for my £750 pension advice payment. It’s coming your way!