any advice or opinion on the following would be appreciated
so 25 years service plus transferred in pension from previous job
took my nra 60 last year and am now plan to pack up working for royalmail but maybepick up something else for my sanity so question is
do I take the 65nra now or leave it frozen as I'm not paying in is there any growth
or freeze it with the option of transferring it if I do start working again ( not a gimme though)
bit confusing but thanks in advance
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nra 65 options
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montana banana
- Posts: 31
- Joined: 21 Feb 2007, 17:53
- Gender: Female
- Location: london
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RobertT
- EX ROYAL MAIL
- Posts: 6645
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: nra 65 options
You stopped building up any NRA65 pension in 2018 and that's been increasing with inflation each year since. It will continue to do so after you've left RM and when in payment.
Taking it before NRA will mean a 5% per year reduction.
The DBCBS will also continue to increase each year until you take it, but by an amount decided by RM, which is a maximum of CPI + 4%.
The RMSPS element(2010-2012) of your NRA65 is only transferable to another DB scheme.
The RMPP part(2012-2018) can be transferred to either DB or DC.
The DBCBS(2018+) can only be transferred to DC.
It's generally not a good idea to give up the guarantees that a DB scheme provides and most employers no longer offer DB schemes to existing staff, let alone new entrants.
Taking it before NRA will mean a 5% per year reduction.
The DBCBS will also continue to increase each year until you take it, but by an amount decided by RM, which is a maximum of CPI + 4%.
The RMSPS element(2010-2012) of your NRA65 is only transferable to another DB scheme.
The RMPP part(2012-2018) can be transferred to either DB or DC.
The DBCBS(2018+) can only be transferred to DC.
It's generally not a good idea to give up the guarantees that a DB scheme provides and most employers no longer offer DB schemes to existing staff, let alone new entrants.
Links to all RM pension related websites are here
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NorthernBoy
- EX ROYAL MAIL
- Posts: 384
- Joined: 27 Sep 2010, 21:08
- Gender: Male
Re: nra 65 options
The RMPP part(2012-2018) can be transferred to either DB or DC.
If the cetv value of this part of your pension is more than 30k (expect it will be), then you have to pay for financial advice. You will need a yes recommendation to get your money out, but chances are it will be a no recommendation.
Personally I would take the money now but we are all different.
If the cetv value of this part of your pension is more than 30k (expect it will be), then you have to pay for financial advice. You will need a yes recommendation to get your money out, but chances are it will be a no recommendation.
Personally I would take the money now but we are all different.