PENSION

[Lincox]

I think you are incorrect, in as much that part timers overtime up to 40 hours is pensionable. Full timers will be based on 40 (39) hours.

[arnold cheshire]

There is no set weekly premium deductible, as the amount you pay is also based on overtime as well.

its not overtime isnt pensionable

[arnold cheshire]

i wouldnt bother what with the pension defecit and now you cant claim it till your 65 when it was 60 terrible thing to do the workers

New starters qualify for the the money purchase pension scheme when they reach 1 years service, which they can draw from 55 if they chose.
Members of the final/career salary schemes(began service before 2008) can also draw from 55 but have to take a 5% reduction per year.

yes you can draw it from 55 but you lose 5 percent every year you draw it early so you would lose 50 percent of it

[arnold cheshire]

yes it is ,You will be glad you did one day.

when youre a pensioner you should have no mortgage you wont need a car if you rent and your on state pension only you will qualify for housing benefit and pension credits . pay into a company pension you will get nothing as you will probably be 2 quid a week better off

[Cheetah]

This is very interesting and this debate could be very missleading on what is a VERY important descision. The thing is you must make this descision yourself and do your homework. The CARE scheme which is used by RM does have it's benefits there is no doubt of that, but it falls far short of the old Final salary scheme and depending on your circumstances you may be better served contributing to a Stake holder or similar private scheme......
Now it is up to you firstly to make the descision on how you intend to provide for your old age (i.e could be pension, property if you can afford it,or even not bother and rely on the state, etc). The most likely option will be pension, it is then up to you to research and make an informed descision on where best to invest your money e.g company scheme with RM or a private scheme (i.e Aviva or similar, hundreds to choose from). You need to look at the benefits provided by either, as both do have benefits i.e private scheme not tied to one company when purchasing your annuity, you can go to the provider offering the best return....., Company scheme does have more security (believe it or not) and I believe even under the CARE scheme you do get a small contribuition off RM each week etc etc.
My advice is don't just jump in, do the research on the internet (it's not as confusing as it may seem) and make the best descision based on you personally and how you intend to lead your life, there is no one size fits all here. Oh one other thing if you do choose the RM scheme and want to pay a small amount of extra pension look into the RM Bonus Plan AVC, this is the only way you can get RM to give towards your AVC (i.e I contribute £2.88 per week they almost match it), check out if that option is still live, it will mount up

[RobertT]

I think you are incorrect, in as much that part timers overtime up to 40 hours is pensionable. Full timers will be based on 40 (39) hours.

Fair point Lincox, I stand corrected on part timers.

i wouldnt bother what with the pension defecit and now you cant claim it till your 65 when it was 60 terrible thing to do the workers

New starters qualify for the the money purchase pension scheme when they reach 1 years service, which they can draw from 55 if they chose.
Members of the final/career salary schemes(began service before 2008) can also draw from 55 but have to take a 5% reduction per year.

yes you can draw it from 55 but you lose 5 percent every year you draw it early so you would lose 50 percent of it

If you take your NRA60 benefits at 55 you lose 25%. If you take your NRA65 benefits at 55 you lose 50%. But then again, the benefits from a money purchase pension are drastically reduced at 55 aswell.

[RobertT]

when youre a pensioner you should have no mortgage you wont need a car

I agree about the mortgage, but many pensioners still want and need a car.

if you rent and your on state pension only you will qualify for housing benefit and pension credits.

The government have proposals to scrap pension credits aswell as SERPS/S2P in the next few years and introduce a new flat rate state pension. Housing benefit could also be in line for 'streamlining' along with other benefits at some future point.

pay into a company pension you will get nothing as you will probably be 2 quid a week better off

Company and personal pensions are in addition to your state pension, so you will be much better off than that!

[TrueBlueTerrier]

when youre a pensioner you should have no mortgage you wont need a car

I agree about the mortgage, but many pensioners still want and need a car.

Agree with that my parents now both in their 70s need a car because of reduced mobility and poor provision of public transport. Luckily they saved up and have a comfortable, but not lavish, retirement.

[RobertT]

This is very interesting and this debate could be very missleading on what is a VERY important descision. The thing is you must make this descision yourself and do your homework. The CARE scheme which is used by RM does have it's benefits there is no doubt of that, but it falls far short of the old Final salary scheme and depending on your circumstances you may be better served contributing to a Stake holder or similar private scheme......

Go to any financial advisor and they would tell you that joining the CARE scheme is far better than a stakeholder or personal pension due to, amongst other things, RM's contributions, the link to your salary rather than the whims of the stock market and the embedded link to inflation when you draw your pension.

Now it is up to you firstly to make the descision on how you intend to provide for your old age (i.e could be pension, property if you can afford it,or even not bother and rely on the state, etc). The most likely option will be pension, it is then up to you to research and make an informed descision on where best to invest your money e.g company scheme with RM or a private scheme (i.e Aviva or similar, hundreds to choose from).

A mixture of different assets is often best, such as pension, ISA's, property, etc. But a pension is the only thing that'll give you a guaranteed income for life.

You need to look at the benefits provided by either, as both do have benefits i.e private scheme not tied to one company when purchasing your annuity, you can go to the provider offering the best return....., Company scheme does have more security (believe it or not) and I believe even under the CARE scheme you do get a small contribuition off RM each week etc etc.

The only thing you really need to find out is what will provide the best pension based on your contribution levels, and that will be the RM scheme.

Oh one other thing if you do choose the RM scheme and want to pay a small amount of extra pension look into the RM Bonus Plan AVC, this is the only way you can get RM to give towards your AVC (i.e I contribute £2.88 per week they almost match it), check out if that option is still live, it will mount up

Bonusplan is still available for Section C members(began service between April 1987 & April 2008), and could provide a nice little lump sum. But it won't make a huge impact on your pension income.

[POSTMAN]

Joining a pension scheme means you will get 'something' at retirement age.Even if you leave the job it can be frozen or transferred into another scheme.
People have to ask themselves,if I don't join one,will I REALLY put the money away that I would of somewhere else.
15-20 quid a week out of your wages a week wont be missed,but a DD for 80 quid a month out of your bank will be.

[fmrPOSTIE]

Is the new scheme classed as Defined Benefit? i.e.you will get a set amount back from Royal Mail and it will be index linked?

[arnold cheshire]

when youre a pensioner you should have no mortgage you wont need a car

I agree about the mortgage, but many pensioners still want and need a car.

Agree with that my parents now both in their 70s need a car because of reduced mobility and poor provision of public transport. Luckily they saved up and have a comfortable, but not lavish, retirement.

use tesco dot com and get your shopping delivered tues night for 3 quid

[Cheetah]

This is very interesting and this debate could be very missleading on what is a VERY important descision. The thing is you must make this descision yourself and do your homework. The CARE scheme which is used by RM does have it's benefits there is no doubt of that, but it falls far short of the old Final salary scheme and depending on your circumstances you may be better served contributing to a Stake holder or similar private scheme......

Go to any financial advisor and they would tell you that joining the CARE scheme is far better than a stakeholder or personal pension due to, amongst other things, RM's contributions, the link to your salary rather than the whims of the stock market and the embedded link to inflation when you draw your pension.

Now it is up to you firstly to make the descision on how you intend to provide for your old age (i.e could be pension, property if you can afford it,or even not bother and rely on the state, etc). The most likely option will be pension, it is then up to you to research and make an informed descision on where best to invest your money e.g company scheme with RM or a private scheme (i.e Aviva or similar, hundreds to choose from).

A mixture of different assets is often best, such as pension, ISA's, property, etc. But a pension is the only thing that'll give you a guaranteed income for life.

You need to look at the benefits provided by either, as both do have benefits i.e private scheme not tied to one company when purchasing your annuity, you can go to the provider offering the best return....., Company scheme does have more security (believe it or not) and I believe even under the CARE scheme you do get a small contribuition off RM each week etc etc.

The only thing you really need to find out is what will provide the best pension based on your contribution levels, and that will be the RM scheme.

Oh one other thing if you do choose the RM scheme and want to pay a small amount of extra pension look into the RM Bonus Plan AVC, this is the only way you can get RM to give towards your AVC (i.e I contribute £2.88 per week they almost match it), check out if that option is still live, it will mount up

Bonusplan is still available for Section C members(began service between April 1987 & April 2008), and could provide a nice little lump sum. But it won't make a huge impact on your pension income.

As I said this is a very contravertial subject and people like me or you should not be advising anyone on here as regards what to do with there pension provisions. The individual should do their own research dependent on their requirements and if they are unsure then help should be sort from an indipendent advisor (preferably not a financial one as they will direct you to the company whos product they are selling who will give them the bigest chunk out of your money) TPAS can also be very usefull for providing pension advise and information. Royal mails scheme information http://www.royalmailpensionplan.co.uk/" onclick="window.open(this.href);return false; ......

"rather than the whims of the stock market"

Incorrect, you do not have to invest a private pension into the stock market, you can and will be encouraged in your later years to invest your pot into cash accounts, Secure Gilts or similar......

"and the embedded link to inflation when you draw your pension".

When you take a private pension, stakeholder or other it is not linked directly to inflation alone. Paying into a private pension basically saves you a pot of money, which when you decide to draw your pension will buy you an annuity, this is the set rate at which your pension will be paid at, not solely a link to inflation.

"But a pension is the only thing that'll give you a guaranteed income for life".

Incorrect, you can take an income for life of an ISA if you so choose.

"The only thing you really need to find out is what will provide the best pension based on your contribution levels, and that will be the RM scheme".

Not nessecarily the RM scheme, for example: if the individual does not intend to stay in employment with RM then he may be better with a private scheme as you are punished heavily when transfering to another provider, if he did not wish to defer his RM pension, I don't know how long or if he intends to stay with RM, neither do you. Only the individual asking the question knows...... That is why I tried only to offer constructive comments/points for thought and not to direct him towards anything....... Yes the RM pension would be better for most but it very much depends on the individual and I am not up to date with all pension rules and regulations, nor their circumstances or requirements at retirement. So do not see myself fit to advise anyone about such a Very important thing as Pension provision......

Oh the bonus plan has made a pot for me to purchase an annuity of well over £5,000 for 15 yrs contribution (£2.88 per week less tax cost me around £2.30 a week) which ain't no life changing sum, but when I finish contributing to at retirement will more than double and you knowwhat they say every little helps

[Cheetah]

Is the new scheme classed as Defined Benefit? i.e.you will get a set amount back from Royal Mail and it will be index linked?

The CARE system works like this each year your annual contributions make a pot of money, on the 31st March every year after the first, that pot is increased by the RPI which is added to make your new total, this is how year on year you build your pension pot, so Yes it is a defined benefit.
When you retire your pension continues to be increased each year by the RPI......

[dvbuk55]

Well I can say one thing for certain, if anyone is relying solely on their old age pension to maintain their lifestyle, I would start getting used to living in a cardboard box and eating only every other day whilst selling the big issue or learning to play the guitar or both..............and as a last resort..............well need I say more.