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NRA 65

01 Sep 2017, 17:22

Someone in my office will be 65 soon but doesn't want to take their NRA 65 pension. He has been paying in for 43 years.

Is it correct that if he doesn't take it when he is 65 he will lose any payments he has not claimed and that its not like the government pension where you can delay it and increase it when you actually draw it.

Can someone confirm please.

Thanks

PS Just out of interest what is the maximum time in years you can pay into our pension (leaving aside the closure in March)


NRA 65

01 Sep 2017, 17:41

Hawkey99 wrote:
Is it correct that if he doesn't take it when he is 65 he will lose any payments he has not claimed and that its not like the government pension where you can delay it and increase it when you actually draw it.

Can someone confirm please.



Thats definitely the case with the NRA60 - so on the strength of that I'm guessing that the situation will be the same with the NRA65.
Maybe someone else might be able to say with 100% certainty.

NRA 65

01 Sep 2017, 18:42

The NRA60 element of our pensions closed in 2010. There is no benefit to deferring it after age 60.

The NRA65 is slightly different because we’re still accruing benefits, at least until 31st March 2018!

The maximum number of ‘pension years’ we can accrue is 45 and the latest age we have to take the pension is 75. Details on the pensions website.

Therefore I would suggest that your colleague will need to work out whether it’s worthwhile waiting until 31st March 2018 to get a little bit more pension, but lose out on receiving his already accrued pension from age 65 to that date.
Or whether it’s best just to take it at 65 and lose out on a few extra months worth of pension.

Whichever they choose, there would be no benefit from deferring their NRA65 after April 2018 at the latest(assuming proposed closure to future accrual goes ahead).

If in doubt consult an IFA.

If they intend on staying in RM employment after taking their NRA65, then paying into the DC scheme until they reach 45 years service would be an option to consider.

I assume they've already taken their NRA60?

NRA 65

01 Sep 2017, 19:29

Hi all,

Thanks for your replies.

Your comment about not claiming pension until 75, wouldn't he lose 10 years of payment if he did this.

Thanks

NRA 65

02 Sep 2017, 03:58

Hawkey99 wrote:Your comment about not claiming pension until 75, wouldn't he lose 10 years of payment if he did this.

It wasn’t really a comment, more a statement of fact. The scheme rules are that we have to take our pensions by 75 at the latest.

In practice there may be some merit in deferring the NRA65 pension after 65 if you’re still employed and accruing pension. That would be an individual decision based on your own figures.

But as the current scheme is due to close to future accrual on 31st March 2018, I can’t see any merit in deferring after that date if you’re already 65.

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