NRA60 OPTIONS

[SeanMc]

Just received my RMPP NRA60 Options.
1. £431 per year £1293 Tax Free Lump Sum
2. £373 per year £2492 Tax Free Lump Sum
2A.£431 per year £1293 Tax Free Lump Sum £1581 from Cash Balance Fund
3. £464 per year No Lump Sum or Cash Balance Fund
3A.£464 per year No Lump Sum £2796 from Cash Balance Fund.

Would be grateful for any suggestions on best option.

Thanks.

[SeanMc]

2A is my initial thoughts. However if you don't take any cash fund does it roll over to the rest of the cash fund to be taken at NRA65?

[NWpostie]

Just received my RMPP NRA60 Options.
1. £431 per year £1293 Tax Free Lump Sum
2. £373 per year £2492 Tax Free Lump Sum
2A.£431 per year £1293 Tax Free Lump Sum £1581 from Cash Balance Fund
3. £464 per year No Lump Sum or Cash Balance Fund
3A.£464 per year No Lump Sum £2796 from Cash Balance Fund.

Would be grateful for any suggestions on best option.

Thanks.

That's not a lot of money, this is after how many years of service ?

[SeanMc]

35yrs but remember main pension is RMSPS.

[NorthernBoy]

I would probably go for 3A, but really need the rest of nra60 figures to be sure.

[SeanMc]

Thanks

[heapsy]

I would probably go for 3A, but really need the rest of nra60 figures to be sure.

Yes, I'd second that. Most of the pension will be with the previous scheme. I will one day face the same issue with the latest scheme. I'm only likely to have around 5 years accrual, as I'm really hoping to be out at 60.

[SeanMc]

Hope it works out for you. Iv'e just turned 60 and i'm out thankfully.

[NWpostie]

35yrs but remember main pension is RMSPS.

Ah did wonder for a minute, thanks for the update.
Let us know how you're doing and what's the final figure is overall.

[SeanMc]

[renrag40]

Just received my RMPP NRA60 Options.
1. £431 per year £1293 Tax Free Lump Sum
2. £373 per year £2492 Tax Free Lump Sum
2A.£431 per year £1293 Tax Free Lump Sum £1581 from Cash Balance Fund
3. £464 per year No Lump Sum or Cash Balance Fund
3A.£464 per year No Lump Sum £2796 from Cash Balance Fund.

Would be grateful for any suggestions on best option.

Thanks.

Thanks for sharing this Sean.
The commutation rate between 1 and 2 is 20.67.
1199/58= 20.67
Most on here who have been trying to work out how much we will get have been using a rate of 20. That 0.67 extra doesn't sound much but for someone who's pension would be £10,000 that is an extra £1,675 on the lump sum and an extra £21 on the monthly pension. Little fish are sweet , as they say.

[stephen500]

Just received my RMPP NRA60 Options.
1. £431 per year £1293 Tax Free Lump Sum
2. £373 per year £2492 Tax Free Lump Sum
2A.£431 per year £1293 Tax Free Lump Sum £1581 from Cash Balance Fund
3. £464 per year No Lump Sum or Cash Balance Fund
3A.£464 per year No Lump Sum £2796 from Cash Balance Fund.

Would be grateful for any suggestions on best option.

Thanks.

I would hope that any cash balance you don't take would then be given with your NRA 65 and from my reading of a friends options who only took NRA60, that was the case. So I don't think you need to worry about that (but check).
For me taking option 3 or 3A costs you £1293 in lump sum v 2A but you gain £33 a year! which would only take 33 years to claw back!.
Option 2 you lose £91 a year but gain £2492, but to lose it would take you 27 years.
But remember when cash has gone it has gone, whereas your pension will increase with inflation.
So it depends which is more important to you, more pension and less lump sum, or more lump sum and less pension.
Remember that you can take any combination betwee 1% tax free and the full 25% tax free and adjust your pension accordingly.
My full pension here was £600.34 a year and £1976 min LS or reduced pension fo £519.54 and £3463.59 max LS.
A difference of £80 a year for giving up £1487 lump sum. which for me will mean around 18 years of pension for me to start losing out.
Which is similar for your option 2 v option 2A ie gaining £58 a year and losing £1199.00 taking 20 years to recoup the difference.
What is not included with any of these options is the effect of inflation on your money.
But as said, pensions will increase with inflation, lump sums don't and the only thing you can get for them is interest on those savings or returns from investments.
Having said all of this, I think I would have gone for option 2A. Where the use of the cash balance makes up and actually exceeds your max cash free lump sum for option 2.

[stephen500]

I would probably go for 3A, but really need the rest of nra60 figures to be sure.

For me option 3A takes 39 years to make up the loss of lump sum

[stephen500]

Just received my RMPP NRA60 Options.
1. £431 per year £1293 Tax Free Lump Sum
2. £373 per year £2492 Tax Free Lump Sum
2A.£431 per year £1293 Tax Free Lump Sum £1581 from Cash Balance Fund
3. £464 per year No Lump Sum or Cash Balance Fund
3A.£464 per year No Lump Sum £2796 from Cash Balance Fund.

Would be grateful for any suggestions on best option.

Thanks.

I would hope that any cash balance you don't take would then be given with your NRA 65 and from my reading of a friends options who only took NRA60, that was the case. So I don't think you need to worry about that (but check).
For me taking option 3 or 3A costs you £1293 in lump sum v 2A but you gain £33 a year! which would only take 39 years to claw back!.
Option 2 you lose £91 a year but gain £2492, but to lose it would take you 27 years.
But remember when cash has gone it has gone, whereas your pension will increase with inflation.
So it depends which is more important to you, more pension and less lump sum, or more lump sum and less pension.
Remember that you can take any combination betwee 1% tax free and the full 25% tax free and adjust your pension accordingly.
My full pension here was £600.34 a year and £1976 min LS or reduced pension fo £519.54 and £3463.59 max LS.
A difference of £80 a year for giving up £1487 lump sum. which for me will mean around 18 years of pension for me to start losing out.
Which is similar for your option 2 v option 2A ie gaining £58 a year and losing £1199.00 taking 20 years to recoup the difference.
What is not included with any of these options is the effect of inflation on your money.
But as said, pensions will increase with inflation, lump sums don't and the only thing you can get for them is interest on those savings or returns from investments.
Having said all of this, I think I would have gone for option 2A. Where the use of the cash balance makes up and actually exceeds your max cash free lump sum for option 2.

[stephen500]

Just received my RMPP NRA60 Options.
1. £431 per year £1293 Tax Free Lump Sum
2. £373 per year £2492 Tax Free Lump Sum
2A.£431 per year £1293 Tax Free Lump Sum £1581 from Cash Balance Fund
3. £464 per year No Lump Sum or Cash Balance Fund
3A.£464 per year No Lump Sum £2796 from Cash Balance Fund.

Would be grateful for any suggestions on best option.

Thanks.

I would hope that any cash balance you don't take would then be given with your NRA 65 and from my reading of a friends options who only took NRA60, that was the case. So I don't think you need to worry about that (but check).
For me taking option 3 or 3A costs you £1293 in lump sum v 2A but you gain £33 a year! which would only take 39 years to claw back!.
Option 2 you lose £91 a year but gain £2492, but to lose it would take you 27 years.
But remember when cash has gone it has gone, whereas your pension will increase with inflation.
So it depends which is more important to you, more pension and less lump sum, or more lump sum and less pension.
Remember that you can take any combination betwee 1% tax free and the full 25% tax free and adjust your pension accordingly.
My full pension here was £600.34 a year and £1976 min LS or reduced pension fo £519.54 and £3463.59 max LS.
A difference of £80 a year for giving up £1487 lump sum. which for me will mean around 18 years of pension for me to start losing out.
Which is similar for your option 2 v option 2A ie gaining £58 a year and losing £1199.00 taking 20 years to recoup the difference.
What is not included with any of these options is the effect of inflation on your money.
But as said, pensions will increase with inflation, lump sums don't and the only thing you can get for them is interest on those savings or returns from investments.
Having said all of this, I think I would have gone for option 2A. Where the use of the cash balance makes up and actually exceeds your max cash free lump sum for option 2.
No way would I go for 3 or 3A