Pension at 55 ?

[elteleltel]

Hi , I'm in the middle of a Divorce and looking to take my 60 benefits early .
Been in the scheme since 2002 , what would be the rough tax free lump I'd get ?
Same with 65 benefits , I'm looking for the paperwork but house not tidy as stuff in boxes .
I want to use any lump sum to add to an 18 k lump from previous employer to help purchase my own house .
Only need an estimate please

Cheers

[noggin1969]

Would depend if your soon to be ex takes half of your pension in the settlement.

[NWpostie]

That's why I'm not married.

You would need to contact RM Pension centre to get an estimate, none of us here can give you an accurate figure as all our circumstances are different.

If you claim it at 55 you need to contact them as they usually only contact you 6 months before NRA60.

[NorthernBoy]

For your section c benefits there is no automatic lump sum, but you are able to take up to 25% of the value tax free by giving up annual pension.

The formula is 20 x annual pension + (any avcs) x 25% max tax free lump sum.

Example say your reduced 60 benefits are £4000 at age 55 x 20 would be £80000, thus max lump free sum would be £20000 (assumed no avcs)

To get your £20k lump sum you would have to give up annual pension of around £1k. As a rough guide it’s usually a ratio of around 20 to 1 when giving up pension to lump sum.

On this scenario you would then have an annual pension of £3k a year. (ball park figures you should check with the pension team for exact amountsj

Hope the above helps.

[heapsy]

I went through a divorce years ago. Kept her out of my pension and it was a good job. Eight years later they closed the FS pension. My advice is do the same. They don't physically give the money I don't think, although I might be wrong. What you have to think about is your life in the future. If it meant working for years longer than you might had done then it would be a massive mistake. Imagine a reduced pension and raging inflation. There will be people out there regretting their decision years ago because of the current situation.

[RobertT]

I went through a divorce years ago. Kept her out of my pension and it was a good job. Eight years later they closed the FS pension. My advice is do the same. They don't physically give the money I don't think, although I might be wrong. What you have to think about is your life in the future. If it meant working for years longer than you might had done then it would be a massive mistake. Imagine a reduced pension and raging inflation. There will be people out there regretting their decision years ago because of the current situation.

There's a bloke the same age as me, in my DO who's on his 3rd marriage and 'gave away' half his pension when he divorced from his 2nd wife, who he had a child with.
If he hadn't done that, he'd have a decent chance of retiring at 60. As it is, realistically he'll be working until 65 and maybe longer.

[elteleltel]

Thank you for all the replies , I'm hoping that I keep my Pension and she has hers .Tbh if mine is worth less I'm not bothered much , just hope to keep what I've built up.
Cheers all

[97gaz]

As the NRA60 closed in 2008 you were only in it 6 years. I would guess your lump sum if taken 5 years early would be not much more than £7-8K if even that. I was in the NRA60 11 years and didn't take mine until I was sixty. I got £17k lump and £250ish a month.

Edit. It wasn't £250 a month, It was £2.5k PA

[RobertT]

As the NRA60 closed in 2008 you were only in it 6 years. I would guess your lump sum if taken 5 years early would be not much more than £7-8K if even that. I was in the NRA60 11 years and didn't take mine until I was sixty. I got £17k lump and £250ish a month.

NRA60 actually relates to pension accrued up to 31st March 2010, which is all final salary and the first 2 years of CARE.

[97gaz]

As the NRA60 closed in 2008 you were only in it 6 years. I would guess your lump sum if taken 5 years early would be not much more than £7-8K if even that. I was in the NRA60 11 years and didn't take mine until I was sixty. I got £17k lump and £250ish a month.

NRA60 actually relates to pension accrued up to 31st March 2010, which is all final salary and the first 2 years of CARE.

I stand corrected. They must have lumped them together then in one pension. When I was IHR with no chance of working again they started my NRA65 early at 62, which was two pensions, one up to 2012 and one after that. So did Care run from 2008 to 2012 the first two years of which went to NRA60 and the second two years to NRA65?

Given that I was in the same schemes as the OP, I would still think my figures are not a million miles away.

[RobertT]

I stand corrected. They must have lumped them together then in one pension. When I was IHR with no chance of working again they started my NRA65 early at 62, which was two pensions, one up to 2012 and one after that. So did Care run from 2008 to 2012 the first two years of which went to NRA60 and the second two years to NRA65?

In your case, yes by the sounds of it.
You'll be getting your NRA65 pension up to 2012 from the RMSPS and from 2012 onwards from RMPP.

Given that I was in the same schemes as the OP, I would still think my figures are not a million miles away.

That would depend on pensionable pay, which can vary depending on the exact job someone does in RM.


Here's a brief summary of RM pensions:

Final salary up to 2008.
CARE from 2008–2018.
DBCBS 2018 to present.

Section A - joined before December 1971.
Section B - joined 1971-1987.
Section C - joined 1987-2008.

RMDCP - joined 2008 to present.
Section F – 5 years in RMDCP then given the choice to join DBCBS.

RMSPS up to 2012.
RMPP 2012 to present.

RMCPP(aka CDC) ?

[97gaz]

I stand corrected. They must have lumped them together then in one pension. When I was IHR with no chance of working again they started my NRA65 early at 62, which was two pensions, one up to 2012 and one after that. So did Care run from 2008 to 2012 the first two years of which went to NRA60 and the second two years to NRA65?

In your case, yes by the sounds of it.
You'll be getting your NRA65 pension up to 2012 from the RMSPS and from 2012 onwards from RMPP.

Given that I was in the same schemes as the OP, I would still think my figures are not a million miles away.

That would depend on pensionable pay, which can vary depending on the exact job someone does in RM.


Here's a brief summary of RM pensions:

Final salary up to 2008.
CARE from 2008–2018.
DBCBS 2018 to present.

Section A - joined before December 1971.
Section B - joined 1971-1987.
Section C - joined 1987-2008.

RMDCP - joined 2008 to present.
Section F – 5 years in RMDCP then given the choice to join DBCBS.

RMSPS up to 2012.
RMPP 2012 to present.

RMCPP(aka CDC) ?

It's confusing. When I took my NRA60 at 60 it was one pension payment. When I was IHR they started paying NRA65 plus a lump I think from the cash balance scheme? Few months on and they contacted me again asking me my options for the pension I had up till 2012.

[RobertT]

It's confusing. When I took my NRA60 at 60 it was one pension payment. When I was IHR they started paying NRA65 plus a lump I think from the cash balance scheme? Few months on and they contacted me again asking me my options for the pension I had up till 2012.

It's hard to be sure as you don't mention any dates. But it sounds as if your NRA60 was paid out before Capita took over the admin for the RMSPS.
I think they took over in 2018?

By the time you took your NRA65, Capita may have begun the admin?
So you should have got figures and a separate pension payment from both the RMSPS and RMPP.

It might be a case of Capita being slow on the uptake, hence why you got more options ' a few months later', rather than at the same time as your RMPP benefits.

There used to be lots of complaints about Capita on this forum, but they seem to have dried up. So perhaps they've finally got their act together?