New pension scheme.

[TrickyTreeshill11]

Hi all,
I ve been in the flexiplan for the last 4/5 years contributing £50 a month.
Obviously now that will cease in the coming months due to the new pension scheme coming in.I plan to retire in the next 6/years.
We Obviously have some other options to choose from now.
Either the Lump sum booster or the avc.
Which one would be better to invest in?
All replies much appreciated.
TrickyTreeshill

[mr hil.]

Hi all,
I ve been in the flexiplan for the last 4/5 years contributing £50 a month.
Obviously now that will cease in the coming months due to the new pension scheme coming in.I plan to retire in the next 6/years.
We Obviously have some other options to choose from now.
Either the Lump sum booster or the avc.
Which one would be better to invest in?
All replies much appreciated.
TrickyTreeshill

Both if you can afford to but definitely the LSB which attracts an extra 1% from RM. Personally I will be doing both with as much as I can afford going into the AVC. This new AVC should be much easier to vary the amounts you pay each week/month by being able to make changes online through the People App tile.

[Hyrrokkin]

Hi all,
I ve been in the flexiplan for the last 4/5 years contributing £50 a month.
Obviously now that will cease in the coming months due to the new pension scheme coming in.I plan to retire in the next 6/years.
We Obviously have some other options to choose from now.
Either the Lump sum booster or the avc.
Which one would be better to invest in?
All replies much appreciated.
TrickyTreeshill

Both if you can afford to but definitely the LSB which attracts an extra 1% from RM. Personally I will be doing both with as much as I can afford going into the AVC. This new AVC should be much easier to vary the amounts you pay each week/month by being able to make changes online through the People App tile.

Let's hope so - been waiting nearly 7 weeks for RMPP to change my current Flexiplan AVC weekly amount (they received the form late May).
Standards are slipping used to be much quicker.

[mr hil.]

Just heads up for anyone signing up for the new AVC via the pensions app tile, I am sure I read that once you have submitted the initial request no further changes are allowed until the scheme is up and running.

Obviously no money will start being deducted/invested until the new scheme starts.

[heapsy]

Hi all,
I ve been in the flexiplan for the last 4/5 years contributing £50 a month.
Obviously now that will cease in the coming months due to the new pension scheme coming in.I plan to retire in the next 6/years.
We Obviously have some other options to choose from now.
Either the Lump sum booster or the avc.
Which one would be better to invest in?
All replies much appreciated.
TrickyTreeshill

Both if you can afford to but definitely the LSB which attracts an extra 1% from RM. Personally I will be doing both with as much as I can afford going into the AVC. This new AVC should be much easier to vary the amounts you pay each week/month by being able to make changes online through the People App tile.

Let's hope so - been waiting nearly 7 weeks for RMPP to change my current Flexiplan AVC weekly amount (they received the form late May).
Standards are slipping used to be much quicker.

This happened to me, time before last. They told me it would take place in the next pay cycle. I told them I wasn't paid monthly. |Deafening silence at the other end. When they did rectify it, a department manager actually rang me as I was pushing my HCT on my way to my walk.
The next time, they were back to normal. Trouble is, it can cost us through loss of PSE.
This new system is much better.

[heapsy]

I've read through the details very carefully. It seems that the new pension is more like a watered down version of section B, which has an automatic lump sum. AVCs may NOT be tax free. I don't want to get in to the whole annuity / drawdown thing, as I already have two other pensions worth about £115,000 for this. I'm thinking of boosting my contributions to an alternative fund I have, which I'm using along side my NRA60 AVCs which I will take as a tax free lump sum. It will mean less lump sum from the actual NRA60 pension as my AVCs wont reach 25% of my NRA60, about 20/22%, but a more secure pension from 60. I plan to go then, so I'm not sure paying AVCs into something designed for 67 is such a great idea.

Any thoughts / ideas much appreciated.

[freespeech]

Hi all,
I ve been in the flexiplan for the last 4/5 years contributing £50 a month.
Obviously now that will cease in the coming months due to the new pension scheme coming in.I plan to retire in the next 6/years.
We Obviously have some other options to choose from now.
Either the Lump sum booster or the avc.
Which one would be better to invest in?
All replies much appreciated.
TrickyTreeshill

Both if you can afford to but definitely the LSB which attracts an extra 1% from RM. Personally I will be doing both with as much as I can afford going into the AVC. This new AVC should be much easier to vary the amounts you pay each week/month by being able to make changes online through the People App tile.

Let's hope so - been waiting nearly 7 weeks for RMPP to change my current Flexiplan AVC weekly amount (they received the form late May).
Standards are slipping used to be much quicker.

I usually email and it's done within the month.

[Wullie10]

I've read through the details very carefully. It seems that the new pension is more like a watered down version of section B, which has an automatic lump sum. AVCs may NOT be tax free. I don't want to get in to the whole annuity / drawdown thing, as I already have two other pensioions worth about £115,000 for this. I'm thinking of boosting my contributions to an alternative fund I have, which I'm using along side my NRA60 AVCs which I will take as a tax free lump sum. It will mean less lump sum from the actual NRA60 pension as my AVCs wont reach 25% of my NRA60, about 20/22%, but a more secure pension from 60. I plan to go then, so I'm not sure paying AVCs into something designed for 67 is such a great idea.

Any thoughts / ideas much appreciated.

The booster Is a no brainer but the AVC doesn't sound that great. I have a Standard life pension which is easy to control on the app..I would have thought it better to have something similar and contribute extra to that. It's flexible gives the same benefits as a AVC and you can transfer old AVCs and pensions into it. It gives you a flexible drawdown opinion if and when needed. The joy is being in control of your pension at the touch of a keyboard rather than having to wait an hour on the phone. The message service on the app gives a quick clear response to any questions you may have.

[clashcityrocker]

How do you plan for your retirement if you don't know how much your pension will be?

[Wullie10]

How do you plan for your retirement if you don't know how much your pension will be?

You're annual statements should give you an idea. Check you've paid full NI contributions for the full state pension.

[RobertT]

The booster Is a no brainer but the AVC doesn't sound that great. I have a Standard life pension which is easy to control on the app..I would have thought it better to have something similar and contribute extra to that. It's flexible gives the same benefits as a AVC and you can transfer old AVCs and pensions into it. It gives you a flexible drawdown opinion if and when needed. The joy is being in control of your pension at the touch of a keyboard rather than having to wait an hour on the phone. The message service on the app gives a quick clear response to any questions you may have.

I've had a personal pension with Standard Life for around 20 years or so and have found them to be very good over that time. I'm currently drawing it down.

The investment choices with the new AVC are poor but you do benefit from salary sacrifice(PSE), which is an extra little boost to your savings.

It sounds like the lump sum plus the booster, is likely to fund most of your tax free lump sum. So any AVC's would potentially be taxable at the point of taking your other benefits. Therefore they are perhaps more suited to be transferred to a personal pension, to supplement other pensions such as NRA60/65, to enable an earlier retirement without having to wait until 67.

[clashcityrocker]

How do you plan for your retirement if you don't know how much your pension will be?

You're annual statements should give you an idea. Check you've paid full NI contributions for the full state pension.

The new pension doesn't guarantee a sum. It may and will vary. How do you plan for that?
I know what my state pension will be. That isn't what the title of this thread is.

[merfyn1968]

i too am worried re new pension scheme...am due to retire at 60 in nov 2028 but the plan pays out at 67?...so what happens between 60 and 67 then?...what pension will i get?
will have paid in to pension for 38 and a half years by 2028 if that helps

[RobertT]

i too am worried re new pension scheme...am due to retire at 60 in nov 2028 but the plan pays out at 67?...so what happens between 60 and 67 then?...what pension will i get?

You either leave it until 67, take it earlier with a reduction or transfer as cash to a personal pension and access it from there.

Full details are on the RMCPP website.

[merfyn1968]

Thank you....can I access my rmpp pension at sixty when I retire?...also can I take my money 4life avc same time