Pension advice.

[comeracing]

Been with royal mail since 1996, approaching 50 soon and ive been in agony some days with arthritis in my hip joint the very top of my leg, been told it will get worse as i get older, so im looking very doubtful that i can last until retirement age of 65 + , im seriously thinking about retirement at 55, to be honest im clueless on the pension front, im after figures to be honest, how much pension would i be able to claim, would i get a lump sum as well, anyone have any figures for me please .

[scoobydo79]

You can request a projection of Your pension at 60 and 65 if You ring the number on Your payslip.

[RobertT]

Been with royal mail since 1996, approaching 50 soon and ive been in agony some days with arthritis in my hip joint the very top of my leg, been told it will get worse as i get older, so im looking very doubtful that i can last until retirement age of 65 + , im seriously thinking about retirement at 55, to be honest im clueless on the pension front, im after figures to be honest, how much pension would i be able to claim, would i get a lump sum as well, anyone have any figures for me please .

I assume you're in section C?

Nobody on an anonymous internet forum will realistically be able to give you figures that are anywhere accurate, particularly with the very limited info you've provided.

Your best bet is to consult your latest annual pension statements. They will have Age60 and Age65 benefits on them, just add up the numbers and take off 5% for each year you want to take them before Normal Retirement Age. So taking everything at 55 would mean a 25% reduction on your Age60 and 50% off your Age65.

You should have statements from the RMSPS and RMPP and both will have Age60 and Age65 figures on them.

Perhaps ask a friend who is more clued up to help you and also make use of the info and the 'how to' videos on the websites:

https://www.royalmailpensionplan.co.uk/
https://www.royalmailsps.co.uk/

You won't be able to get a quote from the pensions dept. until you're approaching 55, but I would hazard a guess that it won't be enough to provide a decent income at that age. So my advice would be to start saving as much as you can as soon as possible.

[97gaz]

I've noticed a connection in my office where it seems the length of service in the final salary scheme (NRA60) equates roughly to the payout. I was in the scheme 10 years and got £17k and £2.5k pension. I was talking to an ex colleague last week who's pension had just started. He had twice the length of service in the scheme than me and was getting 32k and 4.8K pension. A mate with three times more service got roughly three times what I got.

I had one year less in the NRA60 than you. I'm purely guessing here. I would think you would get, after 25% reductions, £12-13k lump and £2k PA pension if you take it at 55.

The other pensions are poorer than that.

As Robert says though, nobody can guess what your pension will be exactly. I would follow Roberts advice to work it out from the pension booklet.

[NWpostie]

You would need to do your sums and work out if you can live off your pension otherwise you would be in poverty, I'm not sure if you would qualify for pension credit if you retire at 55.

I recommend you save up enough to be able to divide it over several years to tide you over before claiming your state pension, you would need to plan ahead.

Everybody is of course different, I've been putting away £110 a week into my AVC plan, building up cash savings, I will qualify for a full state pension after a further 3 years of NI payments, I've got it all mapped out so I can retire comfortably at 60.

[heapsy]

You would need to do your sums and work out if you can live off your pension otherwise you would be in poverty, I'm not sure if you would qualify for pension credit if you retire at 55.

I recommend you save up enough to be able to divide it over several years to tide you over before claiming your state pension, you would need to plan ahead.

Everybody is of course different, I've been putting away £110 a week into my AVC plan, building up cash savings, I will qualify for a full state pension after a further 3 years of NI payments, I've got it all mapped out so I can retire comfortably at 60.

A great post. With the current situation regarding inflation, taking the pension early could prove to be a massive mistake. Smaller pension, smaller increases along the way.

[heapsy]

comeracing, could you not get a driving job or callers office duty? I'd look at all the options first. Also, wait for medical retirement if going is the only option. You'll get a payout, and don't be too quick to take a reduced pension. Find out about any benefits first. a wrong financial decision now could be costly. We had a bloke who was medically retied through arthritis before he reached even minimum pension age. I told him the same thing, get the info first before you do anything. I don't know, but some benefits might end when you get to a certain age etc. Taking a pension early might not be a good idea if you later lose a payment. Like I said, I'm not sure, so get the info first.

[barcajr]

You need to bear in mind that if were unable to work, taking your pension early could effect benefits you could be entitled to