Pension figures..

[roadrunner bill]

Hi, my pension figure is from my section c. Capita..

It states annual pension 5k
Supplement 1k.
Pension increase 3.8 k.

Current value annual pension 9.8 k.

What's a pension increase?

I want to take it at 55..

So would it mean 9.8k × 20 = 196k
So would the 25 % lump sum be 49k.

If i took it at 55..
Any info be great.. thanks.

[NWpostie]

You would have to take 25% off, because for each year 5% deduction under age 60, it won't leave you with much.

[roadrunner bill]

Ok thank you..

Im wondering if I'm wrong with my pension amount..

As im.not sure...

Please if anyone one can help... correct me..

I'd be grateful....

[renrag40]

Hi, my pension figure is from my section c. Capita..

It states annual pension 5k
Supplement 1k.
Pension increase 3.8 k.

Current value annual pension 9.8 k.

What's a pension increase?

I want to take it at 55..

So would it mean 9.8k × 20 = 196k
So would the 25 % lump sum be 49k.

If i took it at 55..
Any info be great.. thanks.

As far as I'm aware you don't include the pension supplement in your calculations if you still work for RM.
Plus for each year that you take the pension early you lose 5% of the headline figure..... using the figures above and assuming it is for nra 60 benefits it would be something in the region of....
8,800 x .75 x 20 = 132,000
Lump sum of 33,000
Yearly pension of 4,950.

[roadrunner bill]

Hi, my pension figure is from my section c. Capita..

It states annual pension 5k
Supplement 1k.
Pension increase 3.8 k.

Current value annual pension 9.8 k.

What's a pension increase?

I want to take it at 55..

So would it mean 9.8k × 20 = 196k
So would the 25 % lump sum be 49k.

If i took it at 55..
Any info be great.. thanks.

As far as I'm aware you don't include the pension supplement in your calculations if you still work for RM.
Plus for each year that you take the pension early you lose 5% of the headline figure..... using the figures above and assuming it is for nra 60 benefits it would be something in the region of....
8,800 x .75 x 20 = 132,000
Lump sum of 33,000
Yearly pension of 4,950.

Thank you so much.. for explaining things...

[Wullie10]

Approximately £76 a week after tax. Brutal but sadly that's it. plus about £15 a week supplement you leave the company.

[freespeech]

Approximately £76 a week after tax. Brutal but sadly that's it. plus about £15 a week supplement you leave the company.

Depends on other income......in itself that pension wouldn't be taxed as it's well below the personal allowance of £12570 per year.

[Wullie10]

Approximately £76 a week after tax. Brutal but sadly that's it. plus about £15 a week supplement you leave the company.

Depends on other income......in itself that pension wouldn't be taxed as it's well below the personal allowance of £12570 per year.

Thats true but how many people could survive on £12570 ?
It could supplement a lower wage on a less stressful job but they are not easy to find. I applied for a minimum wage cleaning job and was turned down because I wasn't experienced lol.
Hospital porter jobs can change your shift with little notice. Monday to Friday jobs are not easy to find. Delivery jobs for supermarkets are like jumping out of the pan into the fire. Plus a new job you're under probation. If you take a pension at 55 , unless you've won the lottery then you better have some investments behind you or lucky enough to find a great job. It happens. Many people leave at 55 and its the best thing they ever do. It takes a lot of guts. I admire them .

[roadrunner bill]

Looking at your post..

Your Saying my pot would be 132 k...

I wrote my pot would be 196 k.. but I'm.not sure.

Would that mean I would lose 64 grand if I took it at 55...

Please can someone advise me..

It's a massive hit that... to lose 64k...

[Subman]

Your pension is reduced by approx 5% each year that you take your pension before the age of 60.

Taking your pension 5 years early will mean your pension will be reduced by almost 25%.

Your lump sum will be up to 25% of this lower amount.

There is more detail in some of the earlier posts.

Good luck

[Wullie10]

There are plenty of posts arguing the pros and cons of taking the pension early. . Good advice from above to have a flick through.

[RobertT]

Your Saying my pot would be 132 k...
I wrote my pot would be 196 k.. but I'm.not sure.

The first thing to realise is that you haven't got a pot, you've got a defined benefit pension(Age60&Age65) which is based on pensionable pay and length of service.

The 20x pension method of working things out, gives just a theoretical value and is only used to work out the maximum tax free lump sum available. It doesn't mean your total benefits are worth that amount.

If you want to work out how much you might get out of it in total, you need to multiply your pension by however many years you expect to be drawing it and compare that to what you'd get by taking it early.

For example and in simple terms, ignoring inflation:
Going by the Office for National Statistics calculator, a man who's 55/60 today is expected to live until 84 on average.

So if his pension is £10k per year at 60, he'll get a total of £290,000 by the time he dies at 84.
But if he takes it at 55 with a 5% per year reduction, he'll get a total of £255,000 by 84.
With the break even age of 75, which is when taking it at 60 becomes more beneficial going forward.

You'll also need to factor in any reductions in the lump sum.

What's a pension increase?

It's how much your pension has increased by inflation over the years.

[roadrunner bill]

Your Saying my pot would be 132 k...
I wrote my pot would be 196 k.. but I'm.not sure.

The first thing to realise is that you haven't got a pot, you've got a defined benefit pension(Age60&Age65) which is based on pensionable pay and length of service.

The 20x pension method of working things out, gives just a theoretical value and is only used to work out the maximum tax free lump sum available. It doesn't mean your total benefits are worth that amount.

If you want to work out how much you might get out of it in total, you need to multiply your pension by however many years you expect to be drawing it and compare that to what you'd get by taking it early.

For example and in simple terms, ignoring inflation:
Going by the Office for National Statistics calculator, a man who's 55/60 today is expected to live until 84 on average.

So if his pension is £10k per year at 60, he'll get a total of £290,000 by the time he dies at 84.
But if he takes it at 55 with a 5% per year reduction, he'll get a total of £255,000 by 84.
With the break even age of 75, which is when taking it at 60 becomes more beneficial going forward.

You'll also need to factor in any reductions in the lump sum.

What's a pension increase?

It's how much your pension has increased by inflation over the years.

Thank you very much, for explaining things.. it gives now a better understanding..

[Navalron]

Approximately £76 a week after tax. Brutal but sadly that's it. plus about £15 a week supplement you leave the company.

Depends on other income......in itself that pension wouldn't be taxed as it's well below the personal allowance of £12570 per year.

Thats true but how many people could survive on £12570 ?
It could supplement a lower wage on a less stressful job but they are not easy to find. I applied for a minimum wage cleaning job and was turned down because I wasn't experienced lol.
Hospital porter jobs can change your shift with little notice. Monday to Friday jobs are not easy to find. Delivery jobs for supermarkets are like jumping out of the pan into the fire. Plus a new job you're under probation. If you take a pension at 55 , unless you've won the lottery then you better have some investments behind you or lucky enough to find a great job. It happens. Many people leave at 55 and its the best thing they ever do. It takes a lot of guts. I admire them .

Listen most ex posties will qualify for PIP or attendance allowance. You get it with your pension or without. Also if your pension is only £76 per week, you can claim universal credit as the first £85 per week of a works pension doesn't count. I get most people around £28,000 per year in benefits and that's people who have not got much and are struggling on the state pension. Ive just retired from DWP and you better believe that even with 3 good pensions I will still be claiming around £564 per month from DWP tax free. I've worked all my life, served my country and I'm taking back. Call me greedy, but I guarantee not a lot of you would knock it back. I drink with one of my old bosses from Glasgow mail centre he was distribution manager and his RM pension is £36,000 per year and his state pension is £11,008and I still managed to get him £749 per month tax free. £24billion goes unclaimed each year by pensioners, sick people and unemployed. Now this is going to change in April of 2026 and we will hear about the exact details in the budget in a few weeks. Don't work until you drop, take your pension as soon as you can. Look it up online. Only fools are working for just above minimum wage. Sorry but it's the truth these days. I don't get my state pension until I'm 67 which is another 10 years away. Tomorrow when it's missing from the heaven's I will wake up and go back to sleep. No bosses, no worries. No f***s given anymore.

[NWpostie]

Approximately £76 a week after tax. Brutal but sadly that's it. plus about £15 a week supplement you leave the company.

Depends on other income......in itself that pension wouldn't be taxed as it's well below the personal allowance of £12570 per year.

Thats true but how many people could survive on £12570 ?
It could supplement a lower wage on a less stressful job but they are not easy to find. I applied for a minimum wage cleaning job and was turned down because I wasn't experienced lol.
Hospital porter jobs can change your shift with little notice. Monday to Friday jobs are not easy to find. Delivery jobs for supermarkets are like jumping out of the pan into the fire. Plus a new job you're under probation. If you take a pension at 55 , unless you've won the lottery then you better have some investments behind you or lucky enough to find a great job. It happens. Many people leave at 55 and its the best thing they ever do. It takes a lot of guts. I admire them .

Listen most ex posties will qualify for PIP or attendance allowance. You get it with your pension or without. Also if your pension is only £76 per week, you can claim universal credit as the first £85 per week of a works pension doesn't count. I get most people around £28,000 per year in benefits and that's people who have not got much and are struggling on the state pension. Ive just retired from DWP and you better believe that even with 3 good pensions I will still be claiming around £564 per month from DWP tax free. I've worked all my life, served my country and I'm taking back. Call me greedy, but I guarantee not a lot of you would knock it back. I drink with one of my old bosses from Glasgow mail centre he was distribution manager and his RM pension is £36,000 per year and his state pension is £11,008and I still managed to get him £749 per month tax free. £24billion goes unclaimed each year by pensioners, sick people and unemployed. Now this is going to change in April of 2026 and we will hear about the exact details in the budget in a few weeks. Don't work until you drop, take your pension as soon as you can. Look it up online. Only fools are working for just above minimum wage. Sorry but it's the truth these days. I don't get my state pension until I'm 67 which is another 10 years away. Tomorrow when it's missing from the heaven's I will wake up and go back to sleep. No bosses, no worries. No f***s given anymore.

They go unclaimed because DWP don't push it, when you do they put roadblocks up to deter you, what's the point of DWP if they discourage you.

When it comes to my time to claim my pension I will be in touch for advice, I'm not far off from claiming my NRA60 and I will try to claim all I'm due as my taxes paid for it