New Pension Contributions

[renrag40]

You would be giving up an income for life that will not be index linked and could in certain circumstances be reduced year on year dependent upon the performance of fund managers that you will have no say in employing.
As for spousal benefits, these are only of use if you are married or in a civil partnership. If you are single you are paying for something that you don't need. There is an argument for single people to receive an enhanced pension to reflect the fact that they will not be needing the spousal benefits as with single annuities compared to joint annuities.

[RobertT]

Generally speaking, transferring out of a DB scheme isn't a great idea.
Although CDC aims to provide similar benefits to a DB scheme, it's obviously not the same. Therefore transferring out of CDC might be more attractive for some.

Ultimately, you make the right decision for you!

Personally I don't expect to be in CDC for more than a year or so at the most, and will definitely be looking into all options.

[tractorboy2]

Generally speaking, transferring out of a DB scheme isn't a great idea.
Although CDC aims to provide similar benefits to a DB scheme, it's obviously not the same. Therefore transferring out of CDC might be more attractive for some.

Ultimately, you make the right decision for you!

Personally I don't expect to be in CDC for more than a year or so at the most, and will definitely be looking into all options.

RobertT you may be interested in this answer I got to my question regarding the RMCPP.


Q. With the new pension scheme , if you only pay into it for say 2 years and retire , but do not access it till 67 , how does my contribution increase or decrease as the case may be.


A.
At this stage the future benefit increases or decreases (pension only) are not known. The booklet explains that the benefits you would earn are:

YOU WOULD EARN A PENSION OF 1/80TH OF PENSIONABLE PAY FOR EACH YEAR OF MEMBERSHIP OF THE NEW PLAN (PLUS A LUMP SUM OF 3/80THS FOR EACH YEAR).

If your benefit value is below a certain threshold (not yet known) then it may be payable as a one off cash sum.

[CHUCKYPIG]

Indeed....but it's still going up for most people.

If you're paying more in, you'll also be earning more pension and lump sum than if you were staying at the same contribution level.

Yes, that's true too but the increase could be an issue for some, especially combined with the impending NI increases too. Take home pay will be hit in the coming months.

Yes I am pissed off. I was paying 4% of my salary into the pension pot because I am part time hours and struggle to make ends meet as is. Now the minimum is 6%. That's a 2% pay cut for me. The union has let me down on this.

[RobertT]

Generally speaking, transferring out of a DB scheme isn't a great idea.
Although CDC aims to provide similar benefits to a DB scheme, it's obviously not the same. Therefore transferring out of CDC might be more attractive for some.

Ultimately, you make the right decision for you!

Personally I don't expect to be in CDC for more than a year or so at the most, and will definitely be looking into all options.

RobertT you may be interested in this answer I got to my question regarding the RMCPP.

Q. With the new pension scheme , if you only pay into it for say 2 years and retire , but do not access it till 67 , how does my contribution increase or decrease as the case may be.

A.
At this stage the future benefit increases or decreases (pension only) are not known. The booklet explains that the benefits you would earn are:

YOU WOULD EARN A PENSION OF 1/80TH OF PENSIONABLE PAY FOR EACH YEAR OF MEMBERSHIP OF THE NEW PLAN (PLUS A LUMP SUM OF 3/80THS FOR EACH YEAR).

If your benefit value is below a certain threshold (not yet known) then it may be payable as a one off cash sum.

Thanks!
That is slightly different to the info on the MyRoyalMail website: https://www.myroyalmail.com/collective- ... nefits-age