Leaving pension until nra

[Gary55]

Hi im 63 but will probably leave Royalmail before nra 65 /67 . Would it generally be better to leave pensions until nra as I don't need the money at the moment. Have done 38 years and in section c. Anybody know how much they usually grow each year on average. . Currently i pay the optional amount extra into the 67 pension how would it work if I didn't take pension but retire. Is there any chance I could lose the pensions by not taking them if Royalmail goes to the wall. Thanks for any information

[RobertT]

It's called Normal Retirement Age(NRA) because that's regarded as the optimum time to take your benefits, but ultimately whether you take them early is a personal decision for you, based on your own circumstances and choices.
But there's no benefit in deferring past NRA!

If you leave:
Your Age65 pension will still increase by inflation(CPI) until you take it.
Increases to the Cash Balance are set by RM – they aim for(& have so far achieved) at least CPI.
The RMCPP(Age67) pension will increase/decrease by however much the actuaries decide is the correct amount, based on past and expected future returns, as per the rules of that scheme. The lump sum (inc booster) is similar but can't go down.

The RMSPS is paid for by the government/taxpayer.
The RMPP is heavily in surplus.
The RMCPP is designed to always be in 'break even' mode.

All are managed separately from the business.
Only the RMPP could potentially be affected if RM went bust, as they are still responsible for ensuring it's fully funded. But as there's currently around £1 billion more in that pot than is needed to pay everyone's pension, there's no immediate need to worry.


*Inflationary increases are added in April, using the rate the previous September.

[Gary55]

Thanks very helpful