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Taking Pension at 50 years ago

15 May 2020, 18:50

I took my NRA 60 pension when I was 50 this is just before it was changed to 55. From my statement I get at the end of each tax year from RMSPS it says the increase includes your pension supplement. Is this correct? as according to pension booklets and the website you only get the supplement when you leave Royal Mail or did this ruling change when the law changed to taking your pension at 55. Does Robert Tor anyone else know the answer to this.

Taking Pension at 50 years ago

15 May 2020, 19:22

Out of interest how much was the % reduction for taking at age 50?

Sorry don’t know the answer about the pension supplement.

Thanks

Taking Pension at 50 years ago

15 May 2020, 19:24

monaco wrote:I took my NRA 60 pension when I was 50 this is just before it was changed to 55. From my statement I get at the end of each tax year from RMSPS it says the increase includes your pension supplement. Is this correct? as according to pension booklets and the website you only get the supplement when you leave Royal Mail or did this ruling change when the law changed to taking your pension at 55. Does Robert Tor anyone else know the answer to this.

I'm not 100% sure tbh, but if you're in section C having already taken your pension and still working for RM, you shouldn't be getting the supplement.

You might find these interesting just in case they notice an error:

https://www.thisismoney.co.uk/money/pen ... y-won.html
https://www.pensions-ombudsman.org.uk/w ... O-4565.pdf

Taking Pension at 50 years ago

15 May 2020, 19:24

NorthernBoy wrote:Out of interest how much was the % reduction for taking at age 50?

It was 5% per year afaik.

Taking Pension at 50 years ago

15 May 2020, 19:42

RobertT wrote:
NorthernBoy wrote:Out of interest how much was the % reduction for taking at age 50?

It was 5% per year afaik.


50% is a big reduction, but I guess you are getting it paid for an extra 10 years.

I keep thinking about taking my NRA 60 and 65 at age 55, but then I think about the reduction and I go back to age 60 again!

Taking Pension at 50 years ago

16 May 2020, 10:05

Did you transfer any other pensions from previous employment elsewhere to the RMSPS? If you did they do pay the supplement to that part of the pension even if still at RM. Also if you still have the original paperwork it should show any supplement you might be getting on that. If no supplement is shown them you probably are not getting any supplement and Capita are just using the same letter for everything in Section C.

Taking Pension at 50 years ago

16 May 2020, 13:57

I did transfer in about 3 years pension from a previous employment so it may well be that. Thanks for replies

Taking Pension at 50 years ago

16 May 2020, 14:03

NorthernBoy wrote:
RobertT wrote:
NorthernBoy wrote:Out of interest how much was the % reduction for taking at age 50?

It was 5% per year afaik.


50% is a big reduction, but I guess you are getting it paid for an extra 10 years.

I keep thinking about taking my NRA 60 and 65 at age 55, but then I think about the reduction and I go back to age 60 again!


It's impossible isn't it. I thought long and hard about it, 55 or 57 or? Eventually settled on 55, suited our circumstances as good as it could.

Then barely 11 months later we received a quite considerable inheritance which we had no idea about. Certainly wouldn't have taken the pension had I known, but that crystal ball is very elusive...

Taking Pension at 50 years ago

16 May 2020, 14:15

monaco wrote:I did transfer in about 3 years pension from a previous employment so it may well be that. Thanks for replies

Yes that would be it...

Taking Pension at 50 years ago

17 May 2020, 10:27

NorthernBoy wrote:I keep thinking about taking my NRA 60 and 65 at age 55, but then I think about the reduction and I go back to age 60 again!


Depends if you need the additional money. Taking it all at 55 is a massive reduction in later life plus if you are still working then it will all be taxable except for the lump sum. It seems hardly worth it but everybody has different needs and opinions.

Taking Pension at 50 years ago

17 May 2020, 11:05

I noticed that the difference in my pension quotes from March 19 to March 20, taking max lump sum and min monthly pension, was approx.
3k lump sum + £400 p/y(£33 p month)
So I suppose you have to decide whether that's too big a hit..

Also calculated roughly that if I took my pensions, use them as savings and continue working for another year I'd have saved approx 4.5k after tax.
I know the general advice is not to take your pension early...

Taking Pension at 50 years ago

17 May 2020, 11:45

Steve_claret wrote:
NorthernBoy wrote:I keep thinking about taking my NRA 60 and 65 at age 55, but then I think about the reduction and I go back to age 60 again!


Depends if you need the additional money. Taking it all at 55 is a massive reduction in later life plus if you are still working then it will all be taxable except for the lump sum. It seems hardly worth it but everybody has different needs and opinions.



You make some good points. Yes, I would still be working post 55 so the RM pension would be taxable. My long term planning was on taking it at 55, but I am moving back to taking it at 60 now.

I am nearly 50 and have a small DC fund with my current employer and I am also paying a little into a separate NEST dc fund when I can. If these 2 DC funds can get me to around 60k at age 58, I may call it a day and draw them down and then switch to my RM pensions from age 60 onwards.

Taking Pension at 50 years ago

19 May 2020, 17:46

NorthernBoy wrote:Out of interest how much was the % reduction for taking at age 50?

Sorry don’t know the answer about the pension supplement.

Thanks

i took mine at 50, ...11 yrs ago. RMs predicted lump sum at the time was, if i left it till 60 was £34000. but i took it and was deducted 50% which gave me £17000 lump sum. in the 11yrs ive been receiving my pension ive had £33000 in pension payments. so in total ive had £50000 in payments since i took it 11 yrs ago. i used the lump sum to pay off my mortgage and saved a few thousand in interest payments on that as well. i continued to pay into the pension plan after i took my pension so i will have another pension of 16yrs to add to my existing one. some advise against it, some think its good for them. you aren't losing vast amounts as some seem to think. depending on your circumstances it can be a very good investment. it was for me. but you do what YOU think is right for you.

Taking Pension at 50 years ago

19 May 2020, 18:36

i took mine at 50, ...11 yrs ago. RMs predicted lump sum at the time was, if i left it till 60 was £34000. but i took it and was deducted 50% which gave me £17000 lump sum. in the 11yrs ive been receiving my pension ive had £33000 in pension payments. so in total ive had £50000 in payments since i took it 11 yrs ago. i used the lump sum to pay off my mortgage and saved a few thousand in interest payments on that as well. i continued to pay into the pension plan after i took my pension so i will have another pension of 16yrs to add to my existing one. some advise against it, some think its good for them. you aren't losing vast amounts as some seem to think. depending on your circumstances it can be a very good investment. it was for me. but you do what YOU think is right for you.[/quote]


The good thing about this website is the information share from members who have taken their pensions.

Am mentioned previously I was going to take my pension early at 55, but have now switched back to 60. Part of my reasoning is that I’m in good health and think I will live past my average life expectancy of 84!

Looking at your own circumstances and making the right decision for yourself is very important.

Taking Pension at 50 years ago

20 May 2020, 04:37

daveyeff wrote:
NorthernBoy wrote:Out of interest how much was the % reduction for taking at age 50?

Sorry don’t know the answer about the pension supplement.

Thanks

i took mine at 50, ...11 yrs ago. RMs predicted lump sum at the time was, if i left it till 60 was £34000. but i took it and was deducted 50% which gave me £17000 lump sum. in the 11yrs ive been receiving my pension ive had £33000 in pension payments. so in total ive had £50000 in payments since i took it 11 yrs ago. i used the lump sum to pay off my mortgage and saved a few thousand in interest payments on that as well. i continued to pay into the pension plan after i took my pension so i will have another pension of 16yrs to add to my existing one. some advise against it, some think its good for them. you aren't losing vast amounts as some seem to think. depending on your circumstances it can be a very good investment. it was for me. but you do what YOU think is right for you.

Do you mind me asking, how much pension are you getting per month now?

Taking Pension at 50 years ago

20 May 2020, 07:27

You mention, and I quote " i continued to pay into the pension plan after i took my pension " How did you manage to do that? Once you have taken your pension you cannot do this, unless it was a different scheme.

Taking Pension at 50 years ago

20 May 2020, 12:51

You used to be able to continue building up your NRA65 if you'd taken your NRA60.
You can currently pay into the DBCBS if you've taken your NRA60.

If you take both NRA60 & NRA65 the only option is to pay into the RMDCP. Once you've paid into that for 5 years you can join the DBCBS instead.

Taking Pension at 50 years ago

21 May 2020, 15:24

heapsy wrote:You mention, and I quote " i continued to pay into the pension plan after i took my pension " How did you manage to do that? Once you have taken your pension you cannot do this, unless it was a different scheme.

.No, its the normal pension plan. it was the NRA 60 pension i took. the NRA 65 can still be payed in to. unless of course you take both NRA 60 AND NRA 65, in which case you cant.

Taking Pension at 50 years ago

21 May 2020, 15:31

Jefferson Starfish wrote:
daveyeff wrote:
NorthernBoy wrote:Out of interest how much was the % reduction for taking at age 50?

Sorry don’t know the answer about the pension supplement.

Thanks

i took mine at 50, ...11 yrs ago. RMs predicted lump sum at the time was, if i left it till 60 was £34000. but i took it and was deducted 50% which gave me £17000 lump sum. in the 11yrs ive been receiving my pension ive had £33000 in pension payments. so in total ive had £50000 in payments since i took it 11 yrs ago. i used the lump sum to pay off my mortgage and saved a few thousand in interest payments on that as well. i continued to pay into the pension plan after i took my pension so i will have another pension of 16yrs to add to my existing one. some advise against it, some think its good for them. you aren't losing vast amounts as some seem to think. depending on your circumstances it can be a very good investment. it was for me. but you do what YOU think is right for you.

Do you mind me asking, how much pension are you getting per month now?

at first it was £250 per month(less tax) but its up to £265 per month now. at the time i had 17 yrs service in. the one im paying into now, my NRA 65 will pay about another £200 per month and has a current lump sum available of £13000, but that will rise by the time i reach 65.

Taking Pension at 50 years ago

21 May 2020, 15:52

at first it was £250 per month(less tax) but its up to £265 per month now. at the time i had 17 yrs service in. the one im paying into now, my NRA 65 will pay about another £200 per month and has a current lump sum available of £13000, but that will rise by the time i reach 65.


Is the £265 per month figure that you are getting now before or after tax?

If it’s before tax then that works out as less than 0.5% increase per year, can that be right.

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