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i dont understand my pension

18 Oct 2019, 09:00

So I been with RM for over 15 years but never paid much attention to my pension until last year when I started paying to AVC and such

I was in the C plan till I got moved

Received my leaflet recently and i really dont understand what the figures are telling me

total pension earned til mar19 of 4k.. is this my annual pension when I retire?

and then theres a cash balance fund cash of 4k

What about state pension, how does that work into the equation?

i dont understand my pension

18 Oct 2019, 09:08

Can anybody put it into simple terms how you work out what your going to get? Is the figure e.g £5000 your pension? Do you divide that over 52 weeks? Just want a basic idea of what Iv got

i dont understand my pension

18 Oct 2019, 10:10

UglyDef wrote:So I been with RM for over 15 years but never paid much attention to my pension until last year when I started paying to AVC and such

Without knowing your exact start date, you will have about 6 years of NRA60 pension(up to 31/3/10), 8 years of NRA65 pension(between 1/4/10 and 31/3/18 and 18 months of DBCBS(lump sum), as of today?

To make it harder to understand the figures are shown as final salary(up to 31/3/08) and CSDB(between 1/4/08 and 31/3/18). :arrrghhh
I was in the C plan till I got moved

By the sound of it you're still in section C & paying into the DBCBS?
The deduction on your payslip should read: PSE Adj RMPP DBCBS C.

Received my leaflet recently and i really dont understand what the figures are telling me

total pension earned til mar19 of 4k.. is this my annual pension when I retire?

Yes. That will go up with inflation until you take it.
Plus you have the supplement which is payable from when you take your pension until state pension age. But only if you leave RM employment.

and then theres a cash balance fund cash of 4k

Since 1st April 2018 you've been pay into the Defined Benefit Cash Balance Scheme, which provides a lump sum to take with your NRA65 benefits

What about state pension, how does that work into the equation?

You get that aswell as your RM pension

The plan guide will give more in depth info and is available here: https://www.royalmailpensionplan.co.uk/ ... ts/library
Last edited by RobertT on 18 Oct 2019, 13:29, edited 2 times in total.

i dont understand my pension

18 Oct 2019, 10:11

Jambomatt1874 wrote:Can anybody put it into simple terms how you work out what your going to get? Is the figure e.g £5000 your pension? Do you divide that over 52 weeks? Just want a basic idea of what Iv got

Without knowing which section you're in, it's hard to give a proper answer. But my section C illustration has 3 figures:

Total pension earned to 31/3/19 = Your yearly income which will be payable monthly.
Total pension supplement earned to 31/3/19 = Supplement payable from when you take your pension and leave RM to state pension age. Only applicable to section C members.
Cash Balance as at 31/3/19 = This provides a lump sum when taking some of your pension.

Section C members also have the choice to give up some of their pension to get a bigger lump sum.

Section A/B members get a lump sum as standard as well as the DBCBS.

For more info see your plan guide which is available online: https://www.royalmailpensionplan.co.uk/ ... ts/library
Last edited by RobertT on 18 Oct 2019, 13:29, edited 1 time in total.

i dont understand my pension

18 Oct 2019, 12:50

UglyDef wrote:
What about state pension, how does that work into the equation?


State pension is totally separate to your RM pension and therefore isn't shown on your illustration.

State pensions are now normally paid out at either 66 or 67 and you can find out how much you will get by going on the gov website.

i dont understand my pension

18 Oct 2019, 13:14

RobertT wrote:
Jambomatt1874 wrote:Can anybody put it into simple terms how you work out what your going to get? Is the figure e.g £5000 your pension? Do you divide that over 52 weeks? Just want a basic idea of what Iv got

Without knowing which section you're in, it's hard to give a proper answer. But my section C illustration has 3 figures:

Total pension earned to 31/3/19 = Your yearly income which will be payable monthly.
Total pension supplement earned to 31/3/19 = Supplement payable from when you take your pension and leave RM to state pension age. Only applicable to section C members.
Cash Balance as at 31/s/19 = This provides a lump sum when taking some of your pension.

Section C members also have the choice to give up some of their pension to get a bigger lump sum.

Section A/B members get a lump sum as standard as well as the DBCBS.

For more info see your plan guide which is available online: https://www.royalmailpensionplan.co.uk/ ... ts/library


Thank you for your reply I started my pension in 1990 and I’m just a bit confused by it all still got a few years till I’m 55 but just wondered how much it would be worth and wether I should be putting more away

i dont understand my pension

18 Oct 2019, 13:28

The figures on your illustration show the total pension you'll get at 65. If you want to take any of it before NRA you'll get hit with a 5% per year reduction. So if you take all of it at 55 for example, your NRA60 would be reduced by 25% and your NRA65 by 50%.

NRA60 relates to pension accrued before 31st March 2010, NRA65 is afterwards.

What you need to do ask yourself when you want to retire and if your pension will pay out enough to live on. If not, then think seriously about saving more.

i dont understand my pension

18 Oct 2019, 15:26

RobertT thank you I think you are absolutely spot on with everything you said thank you, my leaflet does break down my pension into Pension and supplement and it does split it pre 2008 and 2018, Just I never understaood what all the numbers mean but now I have a better idea so big thanks again

Now the worry is how am I gonna survive on 4k a year,

i dont understand my pension

19 Oct 2019, 20:19

So, do your nra 60 and 65 pensions continue to rise with inflation only until you take them? Also if you leave the business at say 50yrs old, do they still continue to rise if you don't take them till NRA? In this case do you get the pension supplement if you have left the business.

i dont understand my pension

19 Oct 2019, 20:23

UglyDef wrote:RobertT thank you I think you are absolutely spot on with everything you said thank you, my leaflet does break down my pension into Pension and supplement and it does split it pre 2008 and 2018, Just I never understaood what all the numbers mean but now I have a better idea so big thanks again

Now the worry is how am I gonna survive on 4k a year,

A full state pension is £8500 at the minute so total of £12500. If you need more, better start saving hard now and if you can, make some cutbacks. I recommend you take a look at moneysavingsexpert.com ,Martin Lewis site. Masses of great advice on saving and making the most of your money.

i dont understand my pension

20 Oct 2019, 06:12

The current rate of the 'full state pension' is £168.60 per week or £8,767 per year. But what you actually get will depend on your own work and National Insurance history. Some people may get more or less than that amount.
Your state pension will form an important part of your retirement income for the rest of your life, so don't just assume you'll get the above amount, because you might not!

You can find out what you're likely to receive by getting yourself a state pension forecast: https://www.gov.uk/check-state-pension

*State pensions will increase by 3.9% in April 2020 to £175.20 per week or £9,110 per year, based on the current 'full rate'.

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