Pension query

[Walter sobchak]

Please forgive me for starting a new thread but I’m absolutely at a loss trying to figure out what all these different figures mean and would really appreciate it if somebody could try and explain if they can what any of it means.

Thanks.

[freespeech]

In very simplistic terms they show two pensions.....one with a normal retirement age (NRA) of 60 and the other 65. Both are funded by two different providers so to get your total pension for each age you should add together the NRA60 benefits from the two statements and the same for the NRA65 statements. I notice you haven't posted any pics of the second provider. Have you had that statement?

[Jefferson Starfish]

I notice you haven't posted any pics of the second provider. Have you had that statement?

Isn't the first photo from RMPP and the 2nd and 3rd from RMSPS?

[Walter sobchak]

In very simplistic terms they show two pensions.....one with a normal retirement age (NRA) of 60 and the other 65. Both are funded by two different providers so to get your total pension for each age you should add together the NRA60 benefits from the two statements and the same for the NRA65 statements. I notice you haven't posted any pics of the second provider. Have you had that statement?

1st photo is from 1 pension scheme and photos 2&3 are from another one I believe.

I’m just looking for an actual figure of what I’d be living off monthly and a lump sum if there is one??

[Walter sobchak]

I notice you haven't posted any pics of the second provider. Have you had that statement?

Isn't the first photo from RMPP and the 2nd and 3rd from RMSPS?

Yes, that’s correct.

One finished in 2018 I believe and the other one must be a current one?

[Walter sobchak]

So many different figures and numbers it’s hard to understand.

Why don’t they just say this is the amount you will get every year and this is your lump sum at 65?

[RobertT]

So many different figures and numbers it’s hard to understand.
Why don’t they just say this is the amount you will get every year and this is your lump sum at 65?

Because there's a few different scenarios depending on what you choose to do – full pension, max lump sum, etc. They can't include every option.

The RMSPS is for the pension you accrued up to 2012.
The RMPP is for the pension accrued 2012-2018 plus the Cash Balance(2018-2024).
You'll have to login to your RMCPP account(current scheme 2024+) to see what that's worth.

As has been said already, your RMSPS and RMPP statements will have Age60 and Age65 figures on them. Just add them up to see what you might get at those ages, bearing in mind the supplement is only paid if you've left RM and until state pension age.

If you want a rough idea of the lump sum you could take at 60, just take your Age60 pension and multiply by 20, then divide the total by 4.
In return for that lump sum you'll lose some pension, roughly £1 for each £20 in lump sum.

The Cash Balance(DBCBS) is designed to fund the lump sum with RMPP Age 65 benefits, so you don't need to give up any pension.
Some of that will be tax free and some taxable.

There's lots more info via the various plan websites.

vvv

[Walter sobchak]

So many different figures and numbers it’s hard to understand.
Why don’t they just say this is the amount you will get every year and this is your lump sum at 65?

Because there's a few different scenarios depending on what you choose to do – full pension, max lump sum, etc. They can't include every option.

The RMSPS is for the pension you accrued up to 2012.
The RMPP is for the pension accrued 2012-2018 plus the Cash Balance(2018-2024).
You'll have to login to your RMCPP account(current scheme 2024+) to see what that's worth.

As has been said already, your RMSPS and RMPP statements will have Age60 and Age65 figures on them. Just add them up to see what you might get at those ages, bearing in mind the supplement is only paid if you've left RM and until state pension age.

If you want a rough idea of the lump sum you could take at 60, just take your Age60 pension and multiply by 20, then divide the total by 4.
In return for that lump sum you'll lose some pension, roughly £1 for each £20 in lump sum.

The Cash Balance(DBCBS) is designed to fund the lump sum with RMPP Age 65 benefits, so you don't need to give up any pension.
Some of that will be tax free and some taxable.

There's lots more info via the various plan websites.

vvv

Haha!!

Thanks for taking the time to reply but I’m more confused as ever.

[Jefferson Starfish]

Haha!!

Thanks for taking the time to reply but I’m more confused as ever.

Perhaps take some time to read what's been posted and try to understand.

Is adding a few numbers up really that hard?

[Walter sobchak]

Haha!!

Thanks for taking the time to reply but I’m more confused as ever.

Perhaps take some time to read what's been posted and try to understand.

Is adding a few numbers up really that hard?

For me yes it is unfortunately.

[mr hil.]

Royal Mail Pension Calculator.xlsx

A quick excel spreadsheet for you to fill in. Very basic but it will give you a rough idea of the figures possibly available to you.

I have added the figures from your photos.

[Walter sobchak]

Cheers mate

So if I finish at 65 am I looking at an annual pension of £5,347.44 and a lump sum of £7,920.75 ??

Thanks again for your help.

[mr hil.]

It's quite complicated but you may have to sacrifice some pension to get the max lump sums The whole cash balance fund is a lump sum and was designed to be used to fund the age 65 lump sum so you don't have to sacrifice any pension)
You would currently be able to use it to fund the whole Age 65 lump sum and have tax to pay on about £9,000 with a tax free lunp sum of £22,771 at 65
At 60 you can get £9,658 tax free but would have to sacrifice about £480 from the annual pension so only receive about £1500 per year from age 60.
( Very rough calculations see posts elswhere that explains it)


RobertT is the expert on here but a quote from another post on hear sums it up perfectly

You have two options:

1. Fund the tax free lump sum by giving up some pension in which case it's pension x 20 / 4. The Cash Balance(DBCBS) is then paid out as a UFPLS meaning the 1st 25% is also tax free.
2. Use the DBCBS to fund the tax free cash. The maths for that is pension x 20 / 3 which gives you how much of the DBCBS is tax free, with the remainder being paid as a UFPLS.

It's important to realise the DBCBS is specifically attached to RMPP Age65 benefits, that's the pension you accrued 2012-2018.
Although in some cases a small amount may be payable with Age60, as the RMPP are responsible for paying some inflationary increases on RMSPS benefits.

UFPLS – Uncrystalised Funds Pension Lump Sum.

The table gives rough figures to give an idea of what you may expect ( the figures will increase each year)

You will also be in the new CDC scheme which will give you a much greater pension than these figures show if you stay for another 22 years. You can get a final pension forecast from them based on current figures once you log in
https://rmcollectiveplan.com/

[mr hil.]

Royal Mail Pension Calculator.xlsx

Edited calculator to include DBCB funding of the age 65 lump sum

[Walter sobchak]

Please forgive me for starting a new thread but I’m absolutely at a loss trying to figure out what all these different figures mean and would really appreciate it if somebody could try and explain if they can what any of it means.

Thanks.

Which set of figures is the capita pension plan?