New pension scheme.

[Ozzvaldo]

I’m paying AVC’s into Scottish widows and I’m reading these will stop so do I now need to reapply my contribution amount in the people app?

If you go onto the people app once open you will see a tile for the new pension, you can create a new AVC and the additional 1% lump sum boaster, credit where due, it is very easy to complete.

Agreed very easy, anyone who hasn’t done it, go and do it.

Forgive me, I'm a bit thick. Is the box labelled, "Value" where you enter the amount you wish to save per week?. And does this commence from October 7th?

[clashcityrocker]

Forgive me, I'm a bit thick. Is the box labelled, "Value" where you enter the amount you wish to save per week?. And does this commence from October 7th?

No you are not thick.
It is not clear.

I assumed it was requesting a weekly value.
I assume it will start on 7/10.

[SMS1969]

I’m paying AVC’s into Scottish widows and I’m reading these will stop so do I now need to reapply my contribution amount in the people app?

If you go onto the people app once open you will see a tile for the new pension, you can create a new AVC and the additional 1% lump sum boaster, credit where due, it is very easy to complete.

Agreed very easy, anyone who hasn’t done it, go and do it.

Forgive me, I'm a bit thick. Is the box labelled, "Value" where you enter the amount you wish to save per week?. And does this commence from October 7th?

Value is the amount in pounds that you want to pay in extra.

[Hyrrokkin]

I've signed up to the lump sum booster which is straightforward enough as RM is matching it.

What I'm not sure on is the AVC part, it mentioned a percentage rather than the specific weekly amount.

There are two options - percentage and weekly amount

[norris9]

How early can you take this new Collective Plan pension and what hit do you take for taking it early? Where can I find this info?

[kazardaimenu]

What was wrong with the current scheme? Seemed pretty reasonable to me.

[heapsy]

What was wrong with the current scheme? Seemed pretty reasonable to me.
[/quote

All about watering down your pension to save cash. And if people take their pension earlier than they are due, they are watering them down even more.

[wolfman]

How early can you take this new Collective Plan pension and what hit do you take for taking it early? Where can I find this info?

Im pretty sure it matures at 67. From April 2028 you have to wait until 57 until you can take your pension early, so i assume you will take a 50% hit if you take it at 57 (5% each year)

[norris9]

How early can you take this new Collective Plan pension and what hit do you take for taking it early? Where can I find this info?

Im pretty sure it matures at 67. From April 2028 you have to wait until 57 until you can take your pension early, so i assume you will take a 50% hit if you take it at 57 (5% each year)

Is that worse than the RMDCP I am currently on, which I thought was a 25% hit, but maybe I'm wrong?

The thought of getting the Royal Mail pension at 67 + State pension at 72 (which is what I think it will be for me by the time I get there), is depressing.

[RobertT]

How early can you take this new Collective Plan pension and what hit do you take for taking it early? Where can I find this info?

Im pretty sure it matures at 67. From April 2028 you have to wait until 57 until you can take your pension early, so i assume you will take a 50% hit if you take it at 57 (5% each year)

Is that worse than the RMDCP I am currently on, which I thought was a 25% hit, but maybe I'm wrong?

The thought of getting the Royal Mail pension at 67 + State pension at 72 (which is what I think it will be for me by the time I get there), is depressing.

NRA560/65 benefits will take a 5% hit for every year taken before NRA.
The RMDCP hasn't got an NRA as such, because it's just a pot of money with your name on it(similar to a savings account) and it's worth whatever it's worth when you access it. Which can be anytime after age 55, rising to 57 in 2028.

There's currently no definite plans to raise the state pension age above 68, but it may well happen at some point, and the younger you are the more likely you're going to be affected by that.

[norris9]

1/80 multiplied by how many years you contribute.

Example.

20 years of contributions at current basic pay.

£505 (weekly basic pay divided by 80) = £6.31 x 52 weeks x 20 years. This would give £126 per week or £6565 per year. Lump sump would be £6565 x 3 = £19695

This is based without inflation or payrises.

With an average inflation/payrise of 2%. If you contribute from now for the next 20 years. It will be more like this.

£176 per week

£9152 per year

£27546 lump sum.

Is the £505 before or after tax?

[yubin282]

1/80 multiplied by how many years you contribute.

Example.

20 years of contributions at current basic pay.

£505 (weekly basic pay divided by 80) = £6.31 x 52 weeks x 20 years. This would give £126 per week or £6565 per year. Lump sump would be £6565 x 3 = £19695

This is based without inflation or payrises.

With an average inflation/payrise of 2%. If you contribute from now for the next 20 years. It will be more like this.

£176 per week

£9152 per year

£27546 lump sum.

Is the £505 before or after tax?

It's basic pay before tax for a full-time postperson but after 6% pension deduction.

Delivery supplement is not pensionable.

[GRS]

What was wrong with the current scheme? Seemed pretty reasonable to me.

Just follow the golden rule.

If they’re changing something it’s as sure as eggs you’re gonna be losing out. When did anyone change anything in this business to suit or help the staff?!

All we can hope is that the cnuts who have stitched us up & done us down over the years find it very painful & lingering when the time comes to depart this earth.

[heapsy]

I'm 60 in two years time, and I'm hoping to retire then. I'll have about 2 years and 10 months in the new pension. Can't work out which scheme would be best. What do RM do regarding part years, when it comes to calculating your pension? Thanks in advance.

[RobertT]

I'm 60 in two years time, and I'm hoping to retire then. I'll have about 2 years and 10 months in the new pension. Can't work out which scheme would be best. What do RM do regarding part years, when it comes to calculating your pension? Thanks in advance.

You build up a little bit of pension and lump sum with each weekly/monthly contribution you make, just like you did with NRA60/65.

Example:
Your weekly pensionable pay is £500, so you'll accrue 1/80th of that as pension which is £6.25.
The lump sum is 3/80ths, which is £18.75.

If you pay into it for 148 weeks(roughly 2 years 10 months) you'll accrue a pension of £925 and a lump sum of £2,775.
That's obviously from 67 and doesn't factor in any increases or decreases.

There's also the choice to transfer out either pension, lump sum(including booster) or both, which will give you exactly the same choices as you'd have via Nest.
The value of the pension will be your share of the overall pot, as worked out by the scheme actuary.