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Pension or Lump Sum

20 Jun 2020, 18:30

Can someone explain are we currently just paying into a lump sum currently to add to our other pensions or are we actually contributing in some way to pension as well ?

Many thanks

Pension or Lump Sum

20 Jun 2020, 18:42

Assuming the RMPP - we stopped accruing any more pension on 31st March 2018. Since then we've been building up a lump sum to take with those already accrued benefits, via the DBCBS

Pension or Lump Sum

20 Jun 2020, 18:49

Thanks Robert, When you say assuming the RMPP can you explain what you mean.?

So basically until the new scheme gets up and running we won't of increased our pensions at all but will just have a bloody big lump sum ?

If thats right.......No wonder the company was so pleased to get this deal done !

Pension or Lump Sum

20 Jun 2020, 18:58

Hawkey99 wrote:Thanks Robert, When you say assuming the RMPP can you explain what you mean.?

I mean assuming you're a member of the RMPP rather than the RMDCP.

So basically until the new scheme gets up and running we won't of increased our pensions at all but will just have a bloody big lump sum ?

Pensions are still increasing by inflation!
The lump sum equates to a total 19.6% of pensionable pay per year, plus discretionary annual bonuses.

If thats right.......No wonder the company was so pleased to get this deal done !

Of course it's right - it's been the case for over 2 years now! It's old news!

Pension or Lump Sum

20 Jun 2020, 19:32

Hawkey99 wrote:So basically until the new scheme gets up and running we won't of increased our pensions at all but will just have a bloody big lump sum ?


A bloody big lump sum which you will more than likely have to pay some tax on when taking it with your NRA65 pension.

Pension or Lump Sum

20 Jun 2020, 23:12

If you're sensible enough you can divide your lump sum by 7 and use that to tide you over til your state pension kicks in.

My plan is to take the max lump sum through my Flexi and Bonusplan, if there is a bit more I may have look into it a bit deeper.

I plan to take my NRA60 when it's due and pick my NRA65 when due, the other schemes whatever it will be, I will have to learn more about it when it's eventually put in place and make my retirement decision.

I have 8 years to go.

Pension or Lump Sum

21 Jun 2020, 08:20

Your comment "divide your lump sum by 7 and use that to tide you over til your state pension kicks in" is exactly what I'm going to do with my AVCs. I'll leave the other pensions and take when they are due. With other things I have invested / saved into I will be able to retire at 60 and not pay tax for a few years. That way I'll have more pension later, as the cash savings reduce. Larger pension, larger increases.

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