Royal Mail members: Watch out for important pensions info next week

[NWpostie]

Guess in my particular situation I'll probably end up saving up as I don't know how my AVC is going to work in the new scheme, currently I've been putting in £100 a week into my Flexiplan to to try to maximise my lump sum as much as I can in addition to my Bonus plan, I would assume this will stop once the new CDC comes into play, I dont want to be saving toward a new lump sum at 67 when I'm planning to retire at 60 anyway which is a good 6 years off.

Flexiplan and Bonusplan will stop, but the money you've already saved can still be used to fund the tax free cash when taking your NRA60/65 pensions.

We don't know what the new AVC plan will look like, but my guess is it'll be similar to Flexiplan.

In your situation and without knowing any details, it might be an idea to look into paying into the new AVC, taking advantage of the tax breaks, and then transfer out to a DC scheme for drawdown. Assuming that is possible – it is with the current AVC's.

Indeed, if the new flexiplan is similar I may well consider contributing at the same level as before as long as it's separate from the CDC in order to fund a lump sum, however it will only pay out at 67 and I plan to retire at 60, as ever the devil is in the detail.