Section C pension at 55

[oliviamae]

I started taking interest in my pension when I was 40 and looking through these posts,absolutely great advice especially from Mr Royal Mail pension man RobertT ,invested in AVC and its paid off ,got a nice lump sum at 60 and as yet undecided what to do with the surplus
Thanks for the great posts

[Hyrrokkin]

Yes, I took an interest in my pension/retirement in my 20's, which is probably a lot earlier than most do, and it's definitely paid dividends!

I can only agree again with what you say.....

Pensions are excellent ways to save due to the tax breaks and beat other savings vehicles hands down.

One of the best things to do is to start as early as possible, even if it's only small amounts, because the money you save first will have longer to grow and compound.

If you can get a bit more money from your employer, grab it with both hands!

My Bonusplan in particular is a good example of how small sums can add up over time and hopefully the Booster will be similar for many at RM in the future.

For the cost of less than a pint of beer a week, you could be helping to knock a few years off your working life.

[NorthernBoy]

No probs, will post an update once I know all the answers. I'm sure the supplement is just what it is ' a supplement ', only payable if you don't work for RM anymore & so for my personal calculations I've just taken the supplement out of the pension amount......hopefully, won't be disappointed then.
Paul

Thanks Paul. It’s really useful when people share information on here as I am sure it’s helps in their planning.

You may be right on the supplement not being included in the calculation, but if it is then the lump sum potential will be higher. Looking at previous threads the conversion rate is usually around the 20 to 1 level. Personally I am looking to take the max lump sum at 55.

I don't see why the supplement would be included in pension calculations.
It a transitional payment that ends when you hit your state retirement age.
Your RM pension is a whole of life pension.
If the supplement was included in your pension calculations it would increase the cost of providing your pension over the rest of your life. It doesn't seem logical that a pension provider would do that. I maybe wrong. But it just doesn't seem logical.

I just checked the benefits guide and for section c it shows that the supplement is included in the lump sum calculations.

As Robert stated it would be useful if someone who has taken their benefits can confirm if this is correct.

[ps1970]

Dear All,
I will be requesting my quotation this week & will endeavour to update you on timescales of communications & the accuracy of the quotation compared to mine (the generally accepted method of 'method of working out'), which at present, I have not figured in the supplement, but if it is included, I will let you all know !
Cheers
Paul

[NorthernBoy]

Dear All,
I will be requesting my quotation this week & will endeavour to update you on timescales of communications & the accuracy of the quotation compared to mine (the generally accepted method of 'method of working out'), which at present, I have not figured in the supplement, but if it is included, I will let you all know !
Cheers
Paul

Will be useful to get this information for us all, especially clarification on whether the supplement is used in the lump sum calculation.

There was a post recently on another thread which had some lump sum options on it. Personally I think the supplement is included, but let’s see.

[ps1970]

Dear All, here goes !
I requested my quotation & due to a communication problem it took 3 weeks to receive, should have been a week, but it's here ! I've based all my calculations on my 2024 statement so & i feel it's always best to underestimate, so potentially no disappointment, I was very happy with the quotation, getting more than I figured. As you only get the figures that you'll be paid, I looked back at the 2024 statement & added a rough guess increase for the past year to the pensions value, I did my calculations using the method I stated in my initial post & i included the supplement in the value amount & the figures run true....so I would say if you've left the business, it is included in the calculations for your pension, therefore giving a boost ! I hope this is of help to you & thanks to all for the informative threads on this forum !
Good luck & take care all !
Pau

[RobertT]

I did my calculations using the method I stated in my initial post & i included the supplement in the value amount & the figures run true....so I would say if you've left the business, it is included in the calculations for your pension, therefore giving a boost

That's good news!
It's potentially more tax free cash from my AVC's for me.

[NorthernBoy]

Dear All, here goes !
I requested my quotation & due to a communication problem it took 3 weeks to receive, should have been a week, but it's here ! I've based all my calculations on my 2024 statement so & i feel it's always best to underestimate, so potentially no disappointment, I was very happy with the quotation, getting more than I figured. As you only get the figures that you'll be paid, I looked back at the 2024 statement & added a rough guess increase for the past year to the pensions value, I did my calculations using the method I stated in my initial post & i included the supplement in the value amount & the figures run true....so I would say if you've left the business, it is included in the calculations for your pension, therefore giving a boost ! I hope this is of help to you & thanks to all for the informative threads on this forum !
Good luck & take care all !
Pau

Thanks for the info share.

I think the pension supplement often gets overlooked as it’s an only small % of your pension. However if you have left the business it’s certainly a factor to consider when working out how much you will receive

[ps1970]

Robert, thank you for your informative posts, across this forum, they confirmed what I was told many years ago, good luck with your quotation NorthernBoy I hope all bears well for you ! The only thing that 'foxed me' was the need to provide a P60 from my current employer, otherwise my monthly pension will face an 'emergency tax', I would have thought that by referencing my NI number etc... my current earnings will be able to be established & therefore taxed accordingly, ie the basic rate ?
Paul

[NWpostie]

Dear All, here goes !
I requested my quotation & due to a communication problem it took 3 weeks to receive, should have been a week, but it's here ! I've based all my calculations on my 2024 statement so & i feel it's always best to underestimate, so potentially no disappointment, I was very happy with the quotation, getting more than I figured. As you only get the figures that you'll be paid, I looked back at the 2024 statement & added a rough guess increase for the past year to the pensions value, I did my calculations using the method I stated in my initial post & i included the supplement in the value amount & the figures run true....so I would say if you've left the business, it is included in the calculations for your pension, therefore giving a boost ! I hope this is of help to you & thanks to all for the informative threads on this forum !
Good luck & take care all !
Pau

Bottom line, how much have you been quoted in order to get a ball park figure that we can work with in mind depending on length of service too.

[ps1970]

If you use the method in my first post & apply it to your statement you will get a ballpark figure, if you ceased service between 15÷20 years ago, when the pension was a little less complicated.