Error on pension illustration 2012 may be wide spread

[heapsy]

I rang pensions today and got this reply; apparently the difference with the lump sum from the NRA 60 is down to RMs assumption that people will now be working until 65.

As already mentioned earlier in this thread.

My NRA 60 lump sum dropped from £34,557 to £29,114.

But if you take your pension/lump sum at 60 and leave RM you would still get the £34k.

Not according to pensions dept. The lower figure applies Thing is most people probably wont be able to live on the remaining pension.

[RobertT]

Q8. Why has my lump sum at 60 gone down?

In previous years, the pension supplement has been included in the calculation for the
pension lump sum at 60, for C members, as it was assumed that the member would leave
upon taking their pension. As the supplement is only payable if you cease employment with
Royal Mail (or associated employer) before state pension age, it is not included in the lump
sum calculation, as there is now no retirement age from the business and you can continue
to work and contribute to the scheme past 60. Therefore you would not be eligible for the
supplement. The figure for the lump sum reflects the amount that you would receive should
you take your pension and remain in employment.