part time pensions

[post_bitch]

I am wondering about the pension i pay around £8 a week into the pension ...

after around 4 years its about 1600 paid into pension...... so what is that worth pension wise

IS it really worth me paying this every week where i could use this money and not be SKINT at end of the week like i am all the time.

if im going to get my pension at 60 on part time hours and i get like 20 grand then they can stuff that up there arse

[post_bitch]

wots the point in oputting that in here

no ones going to see it!

[baldrick]

Didn't you get a pension statement last year? It gives you your pension forecast.
You should be getting this year's in August.

[POSTMAN]

wots the point in oputting that in here

no ones going to see it!

Those in the know will.

[RobertT]

I am wondering about the pension i pay around £8 a week into the pension ...
after around 4 years its about 1600 paid into pension...... so what is that worth pension wise
IS it really worth me paying this every week where i could use this money and not be SKINT at end of the week like i am all the time.
if im going to get my pension at 60 on part time hours and i get like 20 grand then they can stuff that up there arse

I'm assuming you started with RM before April 2008 and are therefore paying into the career average pension scheme.

1) You should get a statement every year.
2) The £8 p/w you pay also includes 20% tax relief and because we are contracted out of the state second pension, we also pay less NI, so you actually only pay about £6 p/w.
3) We also recieve(as of April 2011) a 17% contribution off RM aswell as our own(6%) which equates in your case, to about £23 p/w.
4) So if you stop paying into the pension scheme you are saying no to about £1,300 of free money per year in return for an extra £6 in your pocket each week.
5) You only get one chance to build up your pension and that chance lasts your entire working life and the more 'free money' you turn down when it's there, the less well off you're going to be in you old age.

[POSTMAN]

Thanks Rob,wasshername will be on soon to thank you.

[post_bitch]

ok so we lookin at a 30 k pension for 30 years work

fook that

8 a week in pocket for 30 years will do me better

[RobertT]

ok so we lookin at a 30 k pension for 30 years work

The RM career average pension scheme is based on what you earn, not on the amount you pay in, so your end 'pension pot' will be worth a lot more. These type of pensions, although not as good as final salary are still a better deal than most work based schemes and provide an inflation proofed pension for the rest of your life, with the company taking on all the investment risk. Your yearly statement will tell you what you could get in the future.

fook that
8 a week in pocket for 30 years will do me better

The basic state pension (assuming you have the full number of qualifing years) currently pays about £102 p/w, which you will not get until about 67/68 or possibly later. If you don't know when you state pension age is see here:
http://www.pensionsadvisoryservice.org. ... calculator" onclick="window.open(this.href);return false;

It's obviously your money and your choice, but by taking the money now you are stealing from your future to pay for your present.

[post_bitch]

fook that id rather have 800 £ a year for a good hol than a chunk of money wen im near to death

canceld pension today releasing £1500 getting my overdraft paid off but also set up saving in bank for 15 a week to save for a yearly holiday

thanks u rob for the detailed answer

[RobertT]

canceld pension today releasing £1500 getting my overdraft paid off but also set up saving in bank for 15 a week to save for a yearly holiday

That is probably one of the worst financial decisions you will ever make.

[fishtank]

canceld pension today releasing £1500 getting my overdraft paid off but also set up saving in bank for 15 a week to save for a yearly holiday

That is probably one of the worst financial decisions you will ever make.

Can you "release" your pension after 4 years?
I would have thought you could transfer it but not take it out as cash to pay off your overdraft.

[RobertT]

Can you "release" your pension after 4 years?
I would have thought you could transfer it but not take it out as cash to pay off your overdraft.

Some employers offer a buy-out arrangement where you are given a transfer value to put into a personal or stakeholder pension plus a cash sum.
I can only assume that is what's going on here!

It is of course the last thing you should do with a salary based pension scheme and is amazingly shortsighted. Because you are refusing employer contributions and giving away a guaranteed index linked income for life in return for a pot of money with no such guarantees and all you get for your trouble is grand or two in your pocket.

The whole point of a pension is to provide for your old age however long into the distance that may seem, infact the younger you start the better! Throwing away valuable guarantees in return for a quick buck is madness!

[baldrick]

When you are young, retirement and pensions seem a long way off and not worth worrying about.
I thought like that too when I was in my twenties. When I left my last job at 29 I cashed in my (2.5 years) pension for £600.
Approaching 40 I realised that retirement comes sooner than you think and I needed to put as much into my pension as I could, and
started first paying into AVCs until the Equitable Life collapse, and then into buying added years.
I reckon it has cost me more than 10 times (over £6k) to buy those 2.5 years back. I should have transferred them into the RM scheme.
But you couldn't have told me that at the time.

[post_bitch]

f**k IT I TOOK IT OUT 1500 for 2 years saving

800 a year in my pocket for yearly holidays

part time pensions woooooooooooooooo 25 - 30 k if im lucky

NO THANKS

[TrueBlueTerrier]

But Royal Mail pay more into your pension than you would if you were in. If you paid 5% into the new DC scheme RM then pay 7% - So if you paid in £800 in you are giving up £1120 free money