Accuracy of SECTION C pension forecasts

[McDebbins]

Can anyone please advise on the accuracy of the RMSPS annual statements and also the online portal illustrations?

Are the figures calculated using assumed rates of inflation year on year (which couldn’t possibly be forecasted?)

We had a bad experience with Capita and my husband’s company pension (not RM)
The company changed pension administrators, and when he received the new quotations, there was a massive disparity between the new figures and the previous figures issued by Capita.
The previous figures had been forecasting an increase of over 5% year on year. Even if inflation had been higher than it turned out to be this could not have been possible as his pension rules restricted parts of his pension to be capped at of 2.5%!
The new administrators advised that forecasts should not includes predictions for inflation.

My RMSPS annual statement for 2023 showed an increase of more than 10% ifrom the figures in 2022. My statement for 2024 increased by over 5%

I joined in 1988, left in 2011 and I’m in pension C. I read that the uplift for deferred members is capped at 5%.

I’m hoping that the forecasts are correct but after our previous experience I am concerned that I may not know what I will actually receive until the point of it arriving in my bank, which makes it very difficult trying to decide whether to take it early.

Any thoughts or advice would be really appreciated.
Thanks in advance

[RobertT]

The figures are based on your actual entitlement at statement date, not what you might get at 60/65.
They are a guide – when you get a quote for actually taking your benefits, they'll give you accurate figures.

You can get a quote anytime from 3 months before age 55 – there is no compulsion to take your pension at that point!
If you don't want to take it early, they should automatically send a quote before 60/65.

The RMSPS online portal includes all the benefits you have with them and is shown as one total amount. It isn't separated into Age60(up to 2010) and Age65(2010-2012).

[McDebbins]

Thank you, Robert.

So I think you are saying what I hoped would be the case.
Assuming I were turning 60 now, then the figure as detailed on the pension statement for March 2025 wouldn’t be a million miles away from the amount I could expect to receive?

I am turning 56 and have requested a quote for retirement on my birthday. It will be useful to see how it compares to 80% of my NRA illustration on the portal.

Thanks again for your help.

[Wullie10]

I've been checking my 2024 statement against my request for a quotation of my NRA65 if taken 3 years early ( 2025 ) . Even with reductions the quotation is still larger than the statement the previous year which is supposed to give a figure if taken at 65. That's a good sign as it looks like the statement is on the lower side. The quotation for early redemption DOES give a warning the lump sum could be lower than the figure given if taken early.
Sorry should have read the above. The statement is not a 65 forecast...

[RMDEAN11]

I received my N60 RMSPS pension in February and forecast was pretty close . My question is where do you find the amount the RMSP is responsible
for towards the N65 scheme ( 2 years worth) . Once you are in receipt of your N60 pension the RMSPS Portal does not show what its due to pay towards your N65 pension. I received my RMPP forecast but it does not show you any detail for the missing years ( 2010-2012) - any clue

[RobertT]

I received my N60 RMSPS pension in February and forecast was pretty close . My question is where do you find the amount the RMSP is responsible
for towards the N65 scheme ( 2 years worth) . Once you are in receipt of your N60 pension the RMSPS Portal does not show what its due to pay towards your N65 pension. I received my RMPP forecast but it does not show you any detail for the missing years ( 2010-2012) - any clue

The easiest and quickest way to get an idea of those numbers is to use your RMPP Age65 figures as a guide and just add on another two years worth.

So if your RMPP Age65 is £2,400 per year, that's an average of £400. So the full 8 years would equal £3,200.

It won't be 100% accurate and will only work if your hours of work stayed the same the whole time(didn't go from full to part time or vice versa), but it should give you a good ballpark idea of what to expect.

In practice, the earlier years should be worth more because they've had longer to increase with inflation.

[Chelseablue]

Thank you, Robert.

So I think you are saying what I hoped would be the case.
Assuming I were turning 60 now, then the figure as detailed on the pension statement for March 2025 wouldn’t be a million miles away from the amount I could expect to receive?

I am turning 56 and have requested a quote for retirement on my birthday. It will be useful to see how it compares to 80% of my NRA illustration on the portal.

Thanks again for your help. Hi how did you go about requesting a quote. ? Thanks

[RobertT]

Hi how did you go about requesting a quote. ? Thanks

Get in touch with the RMPP and ask for one.

They will contact the RMSPS on your behalf and you'll then receive quotes from both.

[Chelseablue]

Emailed em. Ta robert