Pension (RMDCP 3% EE) help

[wazz]

My pension thing started last week

Each week they take out 3% of my pay

Last week my net payment was £380 and on the deductions the pension (RMDCP 3% EE) took out £8.93.
This week my net payment was £360 and on the deductions the pension (RMDCP 3% EE) took out £11.16.

I am asking because I thought the pension take out same amount each week

[mr ford]

My pension thing started last week

Each week they take out 3% of my pay

Last week my net payment was £380 and on the deductions the pension (RMDCP 3% EE) took out £8.93.
This week my net payment was £360 and on the deductions the pension (RMDCP 3% EE) took out £11.16.

I am asking because I thought the pension take out same amount each week

i thought it was 6 per cent

[IcanthelpthewayIam]

not all allowances are pensionable so that will explain the discrepancy, for a more accurate answer your will need to give us all the information on your payslip and we can tell you what bits are pensionable and what are not

[RobertT]

i thought it was 6 per cent

Only for employees who stared before April 2008 and are in the final/career salary scheme. Everyone who started after that date is in the RM Defined Contribution Pension.

[Lincox]

Looks to me like they have shown the nett contribution on the first week and the gross contribution on the second week.If you take the second week of £11.16 and take off 20% tax relief it netts down to £8.93 which is what they took on first week. I would email wages dept to clarify the situation.

[fb1969]

It doesn't explain the difference but I assume that last week was for just 01-02 Feb and this week it is for 03-09 Feb as that is the period we are paid for (as it only started on 01 Feb). Juts a thought.

[fishtank]

I phoned HR for a duplicate P60 today and noticed they have a section set up for auto-enrolment queries.
Must be expecting a few.

[flaminmoses]

i got a weired amount on the first week.

put it down to 1st feb to the 3rd of feb...pro ratad week

[Danelectro]

I have been looking for some independent advice on this new auto enrolment pension scheme.

Ive been looking for table with the age someone starts paying in and the approx amount that they would receive when they retire.The Zurich site gives no figures for this.It seems this scheme is based on the contributions being invested by Zurich? and if these investments make a profit then a pension based on these profits will be paid out, conversely if these investments dont make any profit then no pension will be received? I have spoke to a few people and they said that any members would be better of with a savings account or premium bonds etc The CWU dont seem to be giving much help and support on this subject so its difficult to advise anyone.I myself with 12 years service opted out of the final salary scheme when I joined and am not the only one and we are in the same boat as any new start.
Any info appreciated as pensions etc not one of my strong points.

[RobertT]

I have been looking for some independent advice on this new auto enrolment pension scheme.
Ive been looking for table with the age someone starts paying in and the approx amount that they would receive when they retire.The Zurich site gives no figures for this.

Try an online pension calculator like this one:
https://www.moneyadviceservice.org.uk/e ... calculator" onclick="window.open(this.href);return false;
Just do a google search for others.

It seems this scheme is based on the contributions being invested by Zurich? and if these investments make a profit then a pension based on these profits will be paid out, conversely if these investments dont make any profit then no pension will be received?

You get a pension based on the total value of your fund, which includes yours & RM's contributions, tax relief and investment growth.

I have spoke to a few people and they said that any members would be better of with a savings account or premium bonds etc

But you won't get any employer contributions or tax relief, and as interest rates are lower than inflation your money is effectively going down in value. Growth on investments can vary, so sometimes you get bad years, but you also get very good years. But over time, history tells us that share based investments do better than cash ones.

[Danelectro]

I have been looking for some independent advice on this new auto enrolment pension scheme.
Ive been looking for table with the age someone starts paying in and the approx amount that they would receive when they retire.The Zurich site gives no figures for this.

Try an online pension calculator like this one:
https://www.moneyadviceservice.org.uk/e ... calculator" onclick="window.open(this.href);return false;
Just do a google search for others.

It seems this scheme is based on the contributions being invested by Zurich? and if these investments make a profit then a pension based on these profits will be paid out, conversely if these investments dont make any profit then no pension will be received?

You get a pension based on the total value of your fund, which includes yours & RM's contributions, tax relief and investment growth.

I have spoke to a few people and they said that any members would be better of with a savings account or premium bonds etc

But you won't get any employer contributions or tax relief, and as interest rates are lower than inflation your money is effectively going down in value. Growth on investments can vary, so sometimes you get bad years, but you also get very good years. But over time, history tells us that share based investments do better than cash ones.

cheers for the reply Robert but found this thread on the guardian website and the general consensus seems to be that its a rip off especially if your over 40 ,for instance if somebody is 50 years old and pays in for 16 years they will receive £980 a year!

I really think there should be direct help for union members from the CWU,I must admit that ive had the opportunity and can only blame myself although the union hardly put up much of a fight during new labours rule and its resulted in have and have not members.

What put me off at the time was I didnt think I would be working for Royal Mail this long and planned to get a degree in the Open University and also the pension schemes for quite a lot of professionals earning over 40 grand a year had collapsed leaving them with nothing and having to continue working well past retirement age.

http://www.guardian.co.uk/money/2012/ju ... olment-pay" onclick="window.open(this.href);return false;

[mandelsons_toenail]

Tbh you may as well enjoy your money now.

By the time we retire we will be dead.

All old posties just drop down dead

[UnhappyGremlin]

Tbh you may as well enjoy your money now.

By the time we retire we will be dead.

All old posties just drop down dead

That's why I don't over exert myself. Thinking of the future.

[RobertT]

cheers for the reply Robert but found this thread on the guardian website and the general consensus seems to be that its a rip off especially if your over 40 ,for instance if somebody is 50 years old and pays in for 16 years they will receive £980 a year!

I agree it's not much, but that's still £980 per year you wouldn't have got if you didn't pay in. And if the state pension is your only income in retirement that bit extra might make quite a big difference.

I really think there should be direct help for union members from the CWU,I must admit that ive had the opportunity and can only blame myself although the union hardly put up much of a fight during new labours rule and its resulted in have and have not members.

That's true of lots of different jobs, it's not just a RM thing.

What put me off at the time was I didnt think I would be working for Royal Mail this long and planned to get a degree in the Open University and also the pension schemes for quite a lot of professionals earning over 40 grand a year had collapsed leaving them with nothing and having to continue working well past retirement age.

There have been a few pension scandals over the years like Maxwell and Equitable Life and i can understand people being dubious about joining up. RM used to run an Equitable Life AVC and I got burnt on that one! But a pension is something you build up over your entire working life, so does it really matter how long you plan to stay in a job? If your getting 'free money' in the form of employer contributions and tax relief then grab it with both hands.

Most people want to retire at some point, but ultimately that can only happen if you have enough money! Nobody can rely on state benefits always being available so realistically, the only way to get the money needed is to either save or work for longer.

http://www.guardian.co.uk/money/2012/ju ... olment-pay

In this article they quote what a stakeholder pension might be worth after paying in £100 per month for 11 years. I have a stakeholder pension tucked and have made considerably more in percentage terms than the figures they quote.

[Danelectro]

thanks again for the info RobertT