A few stats on pension figures

[moyaspawn]

Hi all,
Have been fortunate to reach the age of sixty and have just taken my nra60 pension.
I just like to inform anyone who is interested in a couple of figures I have come across in the last couple of weeks.
On the RMSPS site my pension figures shown was actually down 5% on what I received, on querying this was told it
was just an estimate and your latest annual illustration was more accurate.
Secondly, I have waited and taken it at sixty and my pension has gone up a whopping 45% in the five years, since
I first got a quote aged fifty five. Obviously I have contributied - along with RM - between 55-60, but in my opinion
was well worth it. Thought a few colleagues might find this interesting.

[RobertT]

The annual statements always say, they are estimates and accurate figures will be provided when getting a quote for taking your pension. Your latest statement will always be the most accurate!

Your quote at 55 would have included a 25% early payment reduction, and the increase from 75% back up to 100% is actually an uplift of 33%.

The majority of the remaining increase is due to inflation, as we stopped actually building up any pension in 2018. Contributions for the last 4.5 years have been going into the DBCBS.

Over the years, I've always tried to dissuade people from taking their pensions early. This is a good example of, generally speaking, why you shouldn't. Although I except there are always a minority of cases where it might be the better choice.

[Doris' Dad]

Thank you both for the information.

[high1ander]

yes thanks both for this information it has certainly made me think twice about it
and robert t thanks for all the info you give on here i dont know where we would be without you.

[RobertT]

yes thanks both for this information it has certainly made me think twice about it
and robert t thanks for all the info you give on here i dont know where we would be without you.

[moyaspawn]

Cheers RobertT for the finer detail.
Totally overlooked that I was contributing into the DBCBS and not my nra60 for the last couple of years.
Just seen the difference and was over the moon.
Your knowledge is so valuable to all on this forum and is always interesting to read
your replies on colleagues pension issues. Cheers.

[hermon]

The most interesting pension stat for me is that RPI is currently around 13% and rising.
This means a section C member like myself will see the real terms value of the final salary and career average elements of their pension be devalued by 8% in April as annual increases are capped at 5% of RPI.
Into next year and inflation is expected to be rising to 18% ! So that’s a 13% real terms pension cut for the following April.
If high inflation persists our pension pots could be literally worthless in the near future.
AVCs also down considerably this year and cash savings taking a massive real terms hit month by month.
Anyone reconsidering their retirement date ?

[milly]

The most interesting pension stat for me is that RPI is currently around 13% and rising.
This means a section C member like myself will see the real terms value of the final salary and career average elements of their pension be devalued by 8% in April as annual increases are capped at 5% of RPI.
Into next year and inflation is expected to be rising to 18% ! So that’s a 13% real terms pension cut for the following April.
If high inflation persists our pension pots could be literally worthless in the near future.
AVCs also down considerably this year and cash savings taking a massive real terms hit month by month.
Anyone reconsidering their retirement date ?

That's the idea!
Inflation is a deliberate Government policy to inflate away the debt.
Too many people in the UK live off the Tax payer, not much incentive to work any longer with the plethora of benefits that can be claimed, 16 hours seems to be the most anyone wants to work nowadays.
Then you have all of the Civil Service and Government workers salaries and Gold-Plated Pensions to pay for.
Inflation is the easy way out for any Government so expect your Pension to be worth less but you have the consolation of knowing that you are improving the lives of people that can't be bothered to go to work.

[RobertT]

Then you have all of the Civil Service and Government workers salaries and Gold-Plated Pensions to pay for.

The RMSPS is also paid for by the government/tax payer.

[milly]

Then you have all of the Civil Service and Government workers salaries and Gold-Plated Pensions to pay for.

The RMSPS is also paid for by the government/tax payer.
[/quote

Correct.

[RobertT]

Then you have all of the Civil Service and Government workers salaries and Gold-Plated Pensions to pay for.

The RMSPS is also paid for by the government/tax payer.

Correct.

I wouldn't have said it, if it wasn't!

[milly]

Then you have all of the Civil Service and Government workers salaries and Gold-Plated Pensions to pay for.

The RMSPS is also paid for by the government/tax payer.

Correct.

I wouldn't have said it, if it wasn't!

It still doesn't diminish my point that there are not enough tax payers to fund the people who don't contribute anything.

[RobertT]

Then you have all of the Civil Service and Government workers salaries and Gold-Plated Pensions to pay for.

The RMSPS is also paid for by the government/tax payer.

Correct.

I wouldn't have said it, if it wasn't!

It still doesn't diminish my point that there are not enough tax payers to fund the people who don't contribute anything.

I wasn't disagreeing with you, just stating a fact. This is a forum about RM pensions after all.