Another pension plan

[Murdoch]

Exactrly right, if the money is mismanaged, we pay the price. Not Royal Mail.

The success of DC pensions is also down to investment returns and the people who manage the funds you invest in.

And the other biggest issue. The retirement age being set at 67. Show me the terms for accessing my money earlier! Otherwise I'll suspect the terms are god awful.
Lets face it, who on earth wants to be a postie at 67. The way this job is going, most folk won't make it to 60.

67 isn't great, but personally I see that as just when I can take it(assuming I don't take it early), just as it's also when I get my state pension. It isn't necessarily when I have to retire!

Many people will have other pensions tucked away either with RM or from other employers, which you don't have to wait until 67 to access in full. It's those schemes that will be important if you want to at least semi-retire earlier.

Ultimately it's your retirement and if you don't want to work until you drop, it's up to the individual to take charge of their own destiny. If what you've got isn't going to be enough for you, then it's down to you to do something about it.

Firstly, at least you have some control over where your money goes in the DC pension. In the CDC you'll have absolutely no control.

Secondly, you're pretty much in agreement with my thinking. In that, you'll probably be penalised for accessing the CDC funds early, so you'd be better off waiting to 67 for that cash. Which would mean you'd have to rely on another pension (if you're lucky enough to have one), if you wanted to retire earlier. So in short, other schemes are likely to provide more flexibility, and autonomy with your own savings, than the CDC.

So there's no real disagreement here. I'd likely be better off in another scheme, as my plan is to use my pension to retire early. Not have excess cash at 68+ which I won't need.

Like I said, the warning sign is that there's no mention of the terms for earlier access to funds.

[RobertT]

There will be the option to transfer out your share of the cake when you want to, that wouldn't face a penalty in the same way as taking your pension early.
So you take advantage of the employer contributions and run, when you're ready.

To me that seems like the better option than opting out, but each to their own.

[Murdoch]

There will be the option to transfer out your share of the cake when you want to, that wouldn't face a penalty in the same way as taking your pension early.
So you take advantage of the employer contributions and run, when you're ready.

To me that seems like the better option than opting out, but each to their own.

With your first point, do we know this for sure?

Nobody could possibly make the decision on whether or not to opt-out of CDC yet, as it's not been implemented. We don't fully know the terms. But I agree, if the plan goes ahead as is (with the alternatives as they are), it would be detrimental to opt-out.

This is precisely why I've provided feedback and asked the questions by the official means.

[RobertT]

It says either in the booklet or the myroyalmail website, or both, there will be the option to transfer out.

[Dorset Plodder]

Thanks to Robert T, as usual, for his insightful comments.

There's certainly a few smart cookies on here as well, who have made some canny decisions. I'll probably "go with the flow" as I don't feel smart enough to start messing about with some of these other pension options.

I'm an Old Git with less than 10 years to NRA, so there's not a lot of time for clever strategies. I'd be interested in paying in extra money to try and boost any final payouts though (because I am an Old Git I am already getting some Pension Benefits that I could use for that purpose).

[Murdoch]

It says either in the booklet or the myroyalmail website, or both, there will be the option to transfer out.

I'd need to see the details on that of course, but given the extra employer contributions, this could be the least bad option for those wanting to retire early. It's a morbid point, but, the CDC plan is good if you expect to live long into retirement, not all of us do.

As you've mentioned previously, continuing on in the RMDCP at current contribution rates should be an option. I'd wager even with the reduced employer contributions (i.e. the 10% current rate), certain funds are likely to outperform the CDC.

[CHUCKYPIG]

The union should be thoroughly ashamed of themselves for not only allowing this to happen but actually conspiring with the employer to shaft some of their members.

I suspect that this scheme will be of most benefit to those who only have 4 or 5 years before they intend to retire. Anyone else is unlikely to see it meet their personal retirement plans, particularly if those plans involve retiring much earlier than 67.

Yes I am pissed off at the union for allowing this to happen. I used to pay in 4% of my pay now I am being forced to pay in 6%. An effective 2% pay cut. I am struggling as it is presently to make ends meet. This just makes it worse.

[k979aaa]

Another pension plan in 4 years then when we will contribute the most then they are bleeding us white by then. We are the sacrificial lambs unto the slaughter while trustees and the whole of royal mail management have thrown us all under the bus again. No one listened the first time this happened why should they now or ever again in our futures!

[renrag40]

The union should be thoroughly ashamed of themselves for not only allowing this to happen but actually conspiring with the employer to shaft some of their members.

I suspect that this scheme will be of most benefit to those who only have 4 or 5 years before they intend to retire. Anyone else is unlikely to see it meet their personal retirement plans, particularly if those plans involve retiring much earlier than 67.

Yes I am pissed off at the union for allowing this to happen. I used to pay in 4% of my pay now I am being forced to pay in 6%. An effective 2% pay cut. I am struggling as it is presently to make ends meet. This just makes it worse.

Pensions are an investment in your future. The more contributions put in the better, both by you and the employer. The younger you are the more irrelevant it seems....... until all of a sudden you turn 50 and then its just around the corner.