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Lump sum booster
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Gary55
- Posts: 325
- Joined: 29 Jun 2021, 21:02
- Gender: Male
- Location: london
Lump sum booster
Hi just wondering if it's financially worth paying into the lump sum booster of the new pension as I plan to retire in about a year thanks
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JKSmudge
- Posts: 395
- Joined: 26 Mar 2015, 13:39
- Gender: Male
Re: Lump sum booster
Think you can only contribute an extra 1%, so about £5 per week. BUT RM will match that !
Plus that £5 is before tax and NI so roughly costs you £3.60 for £10 going into your pot.
Think I have that right, Robert will be able to confirm exactly.
Plus that £5 is before tax and NI so roughly costs you £3.60 for £10 going into your pot.
Think I have that right, Robert will be able to confirm exactly.
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RobertT
- EX ROYAL MAIL
- Posts: 6622
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: Lump sum booster
Spot on!
Twelve months of payments into the booster won't amount to a massive sum of money, but it still represents an uplift of 177% on your net contributions, just for signing up and paying in.
Based on JK's figures(£500 p/w pensionable pay), you can either opt in and this time next year have an extra £520 towards your lump sum when you take your RMCPP benefits, which will have only cost you £187. Or don't bother and just have £187 in your pocket throughout the year.
Links to all RM pension related websites are here
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Gary55
- Posts: 325
- Joined: 29 Jun 2021, 21:02
- Gender: Male
- Location: london
Re: Lump sum booster
Thanks guys sounds like free money 
