Approaching 55

[paulwbc]

I'm 55 at the end of Jan 2022.
I still haven't heard from the pension people about my options.
Should I get in touch with them or will they automatically send me out the relevant forms.
Getting a bit worried now as only 2 months to go before turning 55.
If I do have to get in touch who do I refer the matter to. HR?

[RobertT]

They should automatically get in touch a few months before your 60th and 65th birthdays. If you want to take your pension/s before those ages, it's up to you to make the first move.

Contact details for the RMPP and RMSPS are on their websites.

[TrueBlueTerrier]

Yes, I am 57 and they haven't contacted me, so my experience bears out Roberts expert opinion.

[paulwbc]

Thanks guys

[NWpostie]

I would personally wait till you're 60 so you don't have any deductions if you take it early as you will be on that amount from the first day of your payment, it doesn't go up once you reach 60 it will stay at 75% of your pension, i25% is a lot to give up if you take it early.

[freespeech]

I would personally wait till you're 60 so you don't have any deductions if you take it early as you will be on that amount from the first day of your payment, it doesn't go up once you reach 60 it will stay at 75% of your pension, i25% is a lot to give up if you take it early.

Depends how you look at it.....drawing it at 55 and 75% of the payment due at 60 will give you five years of payments. This will take 15 years to recoup from age 60 so you are not better off at all until you are 75. This will be slightly skewed as you will get annual rises regardless so the higher payment at 60 will also increase "more". I bet it's still a win until you are at least 73-74 though.

The lower pension may also assist your tax position (especially as the recoup period will include the state pension).

[Jefferson Starfish]

If the lump sum is being taken which most people do take, the age that you get to parity is more like 70.

[freespeech]

If the lump sum is being taken which most people do take, the age that you get to parity is more like 70.

Mine worked out to 15 years with the LS option.

[Jefferson Starfish]

Assuming the same section everyones should really work out the same.

My maths for section c nra60 is aprox 75 for just the pension but 70 when taking the lump sum.

But there you go.

[heapsy]

I'm 55 at the end of Jan 2022.
I still haven't heard from the pension people about my options.
Should I get in touch with them or will they automatically send me out the relevant forms.
Getting a bit worried now as only 2 months to go before turning 55.
If I do have to get in touch who do I refer the matter to. HR?

Have you factored in that you wont be receiving your pay when you retire? Can you manage, bearing in mind that any future increases will be based on a smaller pension? Tbh, I don't understand the obsession people seem to have with taking pensions early. As RobertT has said in previous posts elsewhere, you only need about 4 years of pension payments to get back all the money you paid in. If you look at the current financial situation, inflation etc, it could mean a much poorer retirement as inflation bites, especially if you live longer than you thought and cash in the bank runs out.

[paulwbc]

Thanks for all your replys guys.
I was not going to touch the pension bit. I was simply thinking of taking a lump sump and how much I could take up to.
Also how much the lump sump would affect my pension at 60.
I started in RM in 1999.

[RobertT]

You'll presumably be in section c.

Unfortunately it's not possible to take just the lump sum! If you want the lump sum you have to take the pension aswell.

[paulwbc]

You'll presumably be in section c.

Unfortunately it's not possible to take just the lump sum! If you want the lump sum you have to take the pension aswell.

Cheers Robert.
I will wait till im 60 :-)