deferred pension - working out max lumpsum ?

[savo]

Hello,

Deferred pension is section C - NRA60...

If I provided the annual pension figures ( as of 31/3/13 ) would it be possible to work out what the max lump sum would be in ££££ ? ie is there a set calculation figure that RM use ?

Complications

Planning on taking it at age 55 ( pension + 25% lump sum ) I realise will take 25% hit for taking it early.

Will be 53 in November, so another couple of years or so worth of annual increases to go on... last years one was about £70 so not going to make much difference to big picture.

Have approx. just over a bag in the AVC fund, which I will take in its entirety which will save a small amount of main pension.

Only did about a 5 year stretch with RM, but did transfer 3 small pensions in while there, which increased pensionable service to about 11 yrs.

[RobertT]

Hello,

No luck on http://forums.moneysavingexpert.com/sho ... ?t=4776023" onclick="window.open(this.href);return false; so you came on here.

Deferred pension is section C - NRA60...

If I provided the annual pension figures ( as of 31/3/13 ) would it be possible to work out what the max lump sum would be in ££££ ? ie is there a set calculation figure that RM use?
Planning on taking it at age 55 ( pension + 25% lump sum ) I realise will take 25% hit for taking it early.
Will be 53 in November, so another couple of years or so worth of annual increases to go on... last years one was about £70 so not going to make much difference to big picture.

Does it not tell you on your statement what you're likely to get at 60? As a rough guide you will need to take 25% off the NRA60 lump sum aswell as the pension.

Have approx. just over a bag in the AVC fund, which I will take in its entirety which will save a small amount of main pension.
Only did about a 5 year stretch with RM, but did transfer 3 small pensions in while there, which increased pensionable service to about 11 yrs.

£1,000 isn't going to go very far, but it will as you say, save some of your indexed linked main pension.

[savo]

Hi Robert, thanks for reply !

Yep asked on MSE as well so you got me bang to rights ( I been on there lately as I went VAT -REG recently , so had some questions relating to that )

Yes have forecast for pension, 3499 per annum on last forecast, including the supplement.... but that's based on taking it at 60..
( THERE IS NO MENTION OF LUMP SUM )

Really needed an idea of how they work out the lump sum ( I thought that you multiplied annual pension by 20 to get your "POT", and then 25% of POT is your max lump sum ???? )

[RobertT]

Really needed an idea of how they work out the lump sum ( I thought that you multiplied annual pension by 20 to get your "POT", and then 25% of POT is your max lump sum ???? )

Yes that's generally a good ball park way of working it out, but probably not completely exact.
So in your case it's £3,500 multiplied by 20 = £70,000 minus 25% for taking it at 55 to give £52,500. So a lump sum of £13,125 would be aproximately your lump sum.
I would suggest a call to the pension service centre a bit closer to the time to get a more accurate figure.

More info can be found by downloading the relevant brochures here:
http://royalmailpensionplan.co.uk/55/rm ... -brochures" onclick="window.open(this.href);return false;

[savo]

Thanks again Robert

Yep I will give the pensions centre a call nearer the time, at least I have an approx. figure now, and can do some limited planning around that....

Ta