Kevster77 wrote:Thank you RobertT that all makes sense.
I am abit confused regarding the point of the dbcbs. on the assumption this new cdc scheme will start pretty soon (next year maybe?) we’ve got a pot of a couple of years contributions which will then end and freeze til we can access it at 65? Seems silly! Can we transfer the dbcbs to a private pension as soon as the rmpp ends/cdc starts or is it tied up til 65?
As per the plan guide for section F:
The NRA for the DBCBS is 65, but you can take it anytime after 55 if you choose and if the RM agree. You can also transfer it out to a personal pension.
The DBDBS is a transitional scheme set up from the RMPP closing to future accrual and the CDC starting. They had to do something and that's what was chosen.
I am a section F member who transferred over to the dbcbs. Reading these forums I’m now thinking I should have stayed with the rmdcp, but hey ho.
In my opinion, staying in the RMDCP may well have been a better choice. I think you do have the option to go back to the RMDCP, although I'm not 100% sure without checking.
I received my avc application forms in the post today. I’m now wondering if I’m doing the right thing? Is that right that avc funds have to be taken at retirement along with the pension? As a section F member I only currently have two lump sum pots (rmdcp/dbcbs) so is it different for me? Can I transfer any avc funds out privately at anytime or is it tied up? I’ve read that any avc would end once the new cdc scheme comes in anyway so possibly come next year I’m sat with 3 very small pension pots (rmdcp/flexiplan/bonusplan).
Under pension flexibility rules, you can access AVC's anytime after 55 or transfer them anytime you want to, see here
We don't yet know what will happen to AVC's when CDC starts.
Someone has suggested I turn my frozen rmdcp pot into a private pension with Zurich and start paying into it Instead of the avc. It was £15,200 when it was frozen last year but seems to have gone up by £500 in the last 12 months so am I better off leaving it where it is?
You can transfer your RMDCP out to any pension provider of your choosing. That might be a better option or it might not, as it depends on charges and investment choices. But AVC's offer the benefit of PSE, which you won't get with a PP.
Sorry for waffling but can I ask you RobertT what you would personally do in my situation as you appear very clued up. I’m 42 with no previous pensions, just my rmdcp and dbcbs. My knees are buggered so I’m not sure I’m gonna last another 25 years!! I could potentially have 6 different rm pensions (rmdcp/bonusplan/flexiplan/dbcbs/cdc/dblss)... Is that a good idea or am I better off condensing as much as I can?
Any advise would be greatly appreciated
I think the first thing you do is to save as much as possible to give yourself the best chance to retire on a reasonable income.
Personally I would take advantage of any free money that's coming my way, so via RM that would be by paying as much as possible into whichever scheme you're a member of.
If that's the RMPP/DBCBS then you have Bonusplan & Flexiplan, benefiting from from extra of RM & PSE.
If that's the RMDCP, then it's PSE, plus RM contributions up to 10% of pay.
Personally in my 30+ years with RM I've aquired:
NRA60 & NRA65(section C)
DBCBS, Flexiplan & Bonusplan aimed at funding the tax free cash when I take the above
CDC & DBLSS assuming they happen, (although they are linked and you could say they're effectively the same scheme).
I also have a personal pension separate from RM, and the state pension.
So depending on what you call a pension, you could say I've got 9 in total
25 Mar 2019, 18:00
Thanks RobertT for your ideas very helpful. I think I will get stuck into the rm avc’s, take advantage of the free money whilst it’s available and see how things progress.
Since I joined the chat forum recently I’ve realised what an incredible position those like yourself who have been with rm a long time and have really looked after their investments have got yourselves into. I just wish I’d have joined Royal Mail much sooner!!
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