DWP confirms new Collective Defined Contribution pension scheme

[Dindin]

Robert T thanks but for pocket money I'd want to pay in £6 a week . And thanks Robert T for the condescending put down

[RobertT]

Meaningful argument no 1 .it goes down and will never be high .

It can go down but can go up too.
The aim is that it will be similar to section B of the CSDB/CARE scheme.
The longer you're a member the more it's likely to be worth, just like any other pension.

No 2 £24 a week we pay is a lot for pocket money

The amount on your wage slip is the gross amount you pay. Factoring tax relief and PSE and you pay 68% of that and the taxman pays the other 32%.

No3 £285 a year max return minus whatever percent for taking early

For a full timer I work the accrual rate out as more like £300 per year in pension, plus £900 in tax free cash from the DBLSS.

You don't have to take it early, that is a decision only you can make.

No4 RM money seems to disappear in the dust

In what way?
The pension will be paid out for life.

You'll receive roughly 90% of your net contributions back when taking the lump sum, with the pension largely being 'profit' for the rest of your life and then a 50% spouses pension on your death.

Plus you have the option of transferring out to a DC scheme for drawdown if you don't want the pension.

No5 the scheme at the moment building up a lump sum is fine

The DBCBS was only intended as a transitional scheme until CDC starts.

For a section C member, the DBCBS is only likely to be tax efficient for 4-5 years and then you start to pay tax on it.
For A/B members it would be a shorter time.

Robert T thanks but for pocket money I'd want to pay in £6 a week . And thanks Robert T for the condescending put down

Apologies if you found it condescending, but at least it encouraged you to put a few proper arguments forward instead of your usual one liners.

[Dindin]

Thanks Robert T again no problems

[renrag40]

As I have stated on several different threads about the proposed CDC scheme. I don’t like the lack of certainty in retirement this scheme gives. I don’t like that the nra is 67. However, that will not stop me joining this scheme. If I didn’t join I would effectively be giving myself a £60 per week pay cut (RMs weekly contribution to my pension). If, nearer to retirement I don’t like the looks of what benefits the new scheme will provide I will transfer out to a DC draw down pension. At least then I would know how much I will be dealing with and able to decide how much I will receive each year.