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Pension

06 Jan 2019, 19:24

Anyone took their 60 pension at 55?
Just wondered as I have 30 years in?

Pension

06 Jan 2019, 21:38

Most of our office have took theirs at 55 cynical lot we are

Pension

07 Jan 2019, 06:13

I did :wave

Pension

07 Jan 2019, 07:36

It’s a yes from me too!,

Pension

07 Jan 2019, 07:55

Generally, taking your pension early along with the associated reductions and still continuing to work is regarded as a bad move.
This video will give you more info:

Pension

07 Jan 2019, 19:04

RobertT wrote:Generally, taking your pension early along with the associated reductions and still continuing to work is regarded as a bad move.
This video will give you more info:


Totally disagree , I took my pension at 56 and still work full time , yes I pay some more tax but the money goes into my bank getting 3% interest and I now have control of it . Also I'm not paying into the pension scheme anymore so it's more money in my pocket , it's now me that makes the decisions and not the company chipping away at it

Pension

08 Jan 2019, 11:57

It is only really possible to know the optimum time to take our pension if we know what our future health will be and when we are going to die.
With the absence of that information I would advise anyone to ask themselves this question : if you couldnt work for ANY reason after taking reduced pension could you live on that reduced pension?
If the answer is no then probably best not to take it.
Just my view & i dont think there is a right or wrong answer. Either option has merits.
We are all in different financial positions and it is a very personal choice to make.
For what its worth I am now 55 and will put off taking it until i am 60 (although its very tempting)

Pension

08 Jan 2019, 13:35

Will I lose 5% cent per year if i take my pension at 55 one of my collegues said its changed to only 1% cent is this right

Pension

08 Jan 2019, 14:01

TheTrolleyMan wrote:Totally disagree , I took my pension at 56 and still work full time , yes I pay some more tax but the money goes into my bank getting 3% interest and I now have control of it . Also I'm not paying into the pension scheme anymore so it's more money in my pocket , it's now me that makes the decisions and not the company chipping away at it

By taking it at 56 you've taken a 20% hit on your NRA60 plus as you're still working, another 20% of what's left goes in income tax. Making a total of 36% of the original unreduced amount.
If you've also taken your NRA65, then that would be a total 56% reduction.

The 3% your getting in interest is only just about keeping up with inflation(RPI), so your money is effectively not going up at all!

It's obviously up to you based on your own circumstances, as garnery suggests.
But the whole point of a pension is to fund your old age when you're not working anymore. Any decision to take it early is potentially forcing you to work longer, and be less well off at a time in your life when you'll have less chance of doing anything about it.

Personally I plan to retire completely at 55, but have no intention of touching any of my RM pension before the NRA's of 60 & 65! :thumbup

Pension

08 Jan 2019, 14:03

yorkmover123 wrote:Will I lose 5% cent per year if i take my pension at 55 one of my collegues said its changed to only 1% cent is this right

If your a member of the RMSPS and the RMPP(you started employment and/or joined the pension before 1st April 2008), any decision to take your pension early will see a 5% per year reduction.
So Your NRA60 will be reduced by 25% and your NRA65 by 50%, by taking them at 55.

If you have a DC pension either with RM, another employer or a private one.Then exit fees are now capped at 1%, which is what your colleague is probably alluding to. Details here.

Pension

08 Jan 2019, 14:42

Thank you Robert for your reply

Pension

08 Jan 2019, 17:44

RobertT wrote:
TheTrolleyMan wrote:Totally disagree , I took my pension at 56 and still work full time , yes I pay some more tax but the money goes into my bank getting 3% interest and I now have control of it . Also I'm not paying into the pension scheme anymore so it's more money in my pocket , it's now me that makes the decisions and not the company chipping away at it

By taking it at 56 you've taken a 20% hit on your NRA60 plus as you're still working, another 20% of what's left goes in income tax. Making a total of 36% of the original unreduced amount.
If you've also taken your NRA65, then that would be a total 56% reduction.

The 3% your getting in interest is only just about keeping up with inflation(RPI), so your money is effectively not going up at all!

It's obviously up to you based on your own circumstances, as garnery suggests.
But the whole point of a pension is to fund your old age when you're not working anymore. Any decision to take it early is potentially forcing you to work longer, and be less well off at a time in your life when you'll have less chance of doing anything about it.

Personally I plan to retire completely at 55, but have no intention of touching any of my RM pension before the NRA's of 60 & 65! :thumbup

he is also getting it for 4 yrs longer which makes his 20% ''hit'' invalid, and is also getting an extra £15 pound a week in his pay for the pension he is not now paying, which covers his extra tax on the pension. wiping out his losses. he WILL eventually be a little worse off when he reaches his mid 70s, but not THAT much....then again his 3% interest over the years will probably cover those future losses making his overall loss marginal.

Pension

08 Jan 2019, 18:37

Postmangit wrote:Anyone took their 60 pension at 55?
Just wondered as I have 30 years in?

my mate just took his in December, he has 30 yrs in, he's 55. he got a £34000 lump sum and just over £300 a month pension. left his NRA65 to mature. another took both (he's 55 also) got 31 yrs in. he got £43000 lump sum and just over £320 a month pension.

Pension

08 Jan 2019, 18:57

daveyeff wrote:he is also getting it for 4 yrs longer which makes his 20% ''hit'' invalid,

Short term gain, long term pain.

and is also getting an extra £15 pound a week in his pay for the pension he is not now paying, which covers his extra tax on the pension. wiping out his losses.

Going by my contributions into the DBCBS section C, he's missing out on about £51 per week off RM and around £3,800 per year in total. In favour of around £17 per week / £885 per year in his pocket.


he WILL eventually be a little worse off when he reaches his mid 70s, but not THAT much....

It will depend on circumstances, but my guess would be the break even age would be early to mid 70's. After that he's increasingly worse off, year by year.
I don't know how old TheTrolleyMan currently is, but the average life expectancy for a 65 year old man today for example, is 83.6 years. And 85.9 years for a woman. Source.

then again his 3% interest over the years will probably cover those future losses making his overall loss marginal.

Like I said, his 3% is currently only keeping up with the price of living. It's not making any money in real terms!
Once he starts to spend it(assuming he does), those returns will obviously go down as far as money in his pocket is concerned.

As has been said in the video I posted, taking your pension early can have long term financial ramifications. So do your maths properly or else get proper advice from a professional. it might just save you lot of money in the long term.

Pension

09 Jan 2019, 05:43

to say people are losing out big time is just simply way off the mark. the £885 he makes from his weekly pension payments plus the £4000 per annum from his pension will more than cover the £3800 you say he will be worse off. its is totally understandable to expect pensions experts and companies to say it is better for people to leave their pensions. its their job to say it. but people are not losing out the vast amounts of money claimed. my mate took his pension from the railway after 42 yrs and also his redundancy. totalling £75000. that was in july 2014. by September 2014 he was diagnosed with lung cancer. he was dead in April 2015. its totally a matter of individual circumstsances but to claim people are losing thousands and thousands is wrong.

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