tax free lump sum

[benmar]

I have been with royal mail for 8 years i am 38 years old, and my lump some at 60 would be £5000 and at 65 it is £55000, how can this be possible just for working 5 extra years? if anyone could explain i would be very greatfull.

[RobertT]

Your RMPP Section C pension is made up of two parts – NRA60 & NRA65. *NRA = Normal Retirement Age

The NRA60 element relates to service from April 1987 to April 2010, so you will only have around 3 years in that pension. The benefits that are provided are now ring fenced and do not increase other than by inflation.

While the NRA65 part relates to your potential service from April 2010 to your 65th birthday, which in your case would be about 32 years, so that part is going to be more valuable. But the figures are only really a guestimate of what you might get assuming you stay at RM until 65 and your hours/wages stay as they are now.

You can find out more info by looking at the website: http://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false; where you can also look at the plan guides: http://www.royalmailpensionplan.co.uk/s ... an/library" onclick="window.open(this.href);return false;

[benmar]

thank you very much for your help robert appreciated.