Taking Part of Pension

Hawkey99 · Post by **Hawkey99** » 01 Oct 2017, 10:49

Hi all,

I am coming up to 55 and am trying to find out a little about how my AVCs would work with only taking part of my pension. I intend to take the maximum weekly amount of each pension (when I decide to take them) with no pension lump sum other than my AVCs I think these are the questions I have.

Could I just take my NRA 65 and leave my AVCs.

Could I take my NRA 60 and leave my AVC.

Could I take NRA60 or NRA 65 and pay into the new pension.

I appreciate that doing some of these things might not make senses but would be grateful for some information.

Thanks

Post by **RobertT** » 01 Oct 2017, 11:17

Hawkey99 wrote:Hi all,
I am coming up to 55 and am trying to find out a little about how my AVCs would work with only taking part of my pension. I intend to take the maximum weekly amount of each pension (when I decide to take them) with no pension lump sum other than my AVCs I think these are the questions I have.

Could I just take my NRA 65 and leave my AVCs.

Yes. You can leave your AVC’s to fund one element of your pension after taking another. Also, you can treat your AVC’s totally separately from your main scheme benefits if you want to, and then access them anytime between 55 and 75. More AVC info here: https://www.royalmailpensionplan.co.uk/ ... .06.11.pdf" onclick="window.open(this.href);return false;

Could I take my NRA 60 and leave my AVC.

Yes. See above.

Could I take NRA60 or NRA 65 and pay into the new pension.

The new Cash Balance/DC scheme is designed to fund the tax free lump sum from your main scheme benefits. So if you’ve already taken all of those benefits, I assume your only option would be to join the existing RM Defined Contribution Plan. Infact if you don’t join it, you will probably be auto-enrolled at some point.
If you've only take one part, i.e NRA60, then I assume you would be allowed to pay into CB/DC.

I appreciate that doing some of these things might not make senses but would be grateful for some information. Thanks

They might make sense in your situation, they might not for others.

linntroika · Post by **linntroika** » 01 Oct 2017, 12:21

Just for clarification , if i were to take all my pension at 55 ( i understand the 25%, 50% reductions) , are the current built up AVCs that i have reduced as well ?

Post by **RobertT** » 01 Oct 2017, 13:18

linntroika wrote:Just for clarification , if i were to take all my pension at 55 ( i understand the 25%, 50% reductions) , are the current built up AVCs that i have reduced as well ?

If you’ve paid into Addplan to buy more final salary years, then I think that would be reduced if taking your NRA60 pension early. *Addplan ceased to be available to new applicants from 1st April 2008.

If you’ve got Bonusplan and/or Flexiplan, they would be worth whatever they’re worth at the time you access them, and would not be reduced.

linntroika · Post by **linntroika** » 01 Oct 2017, 13:21

RobertT wrote:
linntroika wrote:Just for clarification , if i were to take all my pension at 55 ( i understand the 25%, 50% reductions) , are the current built up AVCs that i have reduced as well ?
If you’ve paid into Addplan to buy more final salary years, then I think that would be reduced if taking your NRA60 pension early. *Addplan ceased to be available to new applicants from 1st April 2008.

If you’ve got Bonusplan and/or Flexiplan, they would be worth whatever they’re worth at the time you access them, and would not be reduced.

Many Thanks Robert