life changing for 30 to 40 year olds

Post by **stephen500** » 05 Jan 2017, 16:02

These changes are life changing for members between 30 and 40 years old. Many see their pensions halved with a greater weekly contribution. The employer has stripped away all pensionable allowances, meaning those on nights appear to be at least £2500 a year worse off with pensionable pay. (I am £5000 worse off going forward from 2018, but as I only have about 3 years in it left then, it's affect is minimal) Some £15,000 a year pensions for the 30 year old has been stripped down to nearly £8,000. So glad I am leaving soon, just so sorry for the young left behind. The joke on us is we have used our own pension surplus to give us a few years grace. Imho This employer knew from day 1 in 2013 that this scheme in it's current form would end. I just never thought they would come up with a scheme so bad to replace it.

Post by **stephen500** » 05 Jan 2017, 16:23

Everyone waits each year for their dividend. Approx a whole £130 year a year! In a couple of years we can also cash out approx £4000 (subject to share price). On top of that we get a one off payment of £750. Sounds great! Unless you are between 30 to 40, then you will lose about £5000 per year in pensions, assuming you live for 20 years from 60, that's £100,000 less for you. Even if you are 50, you lose about £2000 per year and I at 57 lose about £800. Words fail me.

Post by **rambo1** » 05 Jan 2017, 16:53

Do you think many will stop their contributions and elect to come out of the plan and 'cut their losses' and look elsewhere to invest the money?

Post by **stephen500** » 05 Jan 2017, 17:00

rambo1 wrote:Do you think many will stop their contributions and elect to come out of the plan and 'cut their losses' and look elsewhere to invest the money?

It is exactly what I have a year to decide. But then I only have 3 years left after 2018, so effect on me is minimal.
People may be wise to take advice. Royal Mail will still contribute, but employees contributions appear to stay around the same for section C (those 40 to 50), whilst benefits are for some halved.

Post by **RobertT** » 05 Jan 2017, 17:05

rambo1 wrote:Do you think many will stop their contributions and elect to come out of the plan and 'cut their losses' and look elsewhere to invest the money?

Based on the basic pay of £412 per week, RM will be contributing about £41(10%) into your pension for you and you’ll be paying in about £25. Although factoring in tax relief and PSE that is actually only going to cost you £17. That’s £49 in ‘free money’ each week! Where else can you get an uprating of your money like that?

The new proposed scheme is crap but why would anybody opt out?

Post by **rambo1** » 05 Jan 2017, 17:14

I take your point. It all looks very complicated with alot of ifs and buts. How come their investments are doing crap when the ftse is at an all time high as we speak?

mark.cup · Post by **mark.cup** » 05 Jan 2017, 18:11

41 with 22 years service and this is a total joke!

I wonder if their investments have been poorly picked on purpose... I have a small stocks and shares ISA and it's been running for 3 years it's currently 14% up

It reminds me of the year where we went from making a million a day to losing a million a day the following thanks to clever accounting

Interest rates can't stay low forever

The booklet delivered to home today is designed to confuse the majority stating on 1 page we will pay in 10% and it's not about saving money then hidden amongst the next pages text mentions the current 17% in the hope we don't notice the difference

Royal Mail put your money where your mouth is and if you to switch us to a DC plan honour the existing funding level even if you add a further level of 10% employee contribution to qualify

Let's be honest this job is a bloody killer physically and after many years of loyal service they want us to be chucked on the scrap heap with a fraction of what we were all promised at 60

Post by **Lounge Lizard** » 05 Jan 2017, 19:36

I doubt if many of us can say that we got a job with Royal Mail all those years ago because of the pension.

Post by **TrueBlueTerrier** » 05 Jan 2017, 20:43

Lounge Lizard wrote:I doubt if many of us can say that we got a job with Royal Mail all those years ago because of the pension.

It was one of the reasons I started at Royal Mail, a nice easy slide into retirement

Celtic Postman · Post by **Celtic Postman** » 05 Jan 2017, 21:34

Lounge Lizard wrote:I doubt if many of us can say that we got a job with Royal Mail all those years ago because of the pension.

I did... It was one of the factors I took into account when I choose Royal Mail over my existing trade.
My trade paid slightly more per week / month but there was a chance of lay offs or having to relocate every few months when work dried up so I chose RM after taking things like the pension into consideration.

mark.cup · Post by **mark.cup** » 05 Jan 2017, 22:00

Lounge Lizard wrote:I doubt if many of us can say that we got a job with Royal Mail all those years ago because of the pension.

I didn't personally even think about the pension at that age if I'm being honest! but being reasonably switched on financially I soon realised just how much it was worth they're not labelled gold plated pensions for no reason...

Also when you pay in and are basically promised something that then in 2008 you get told oh by the way you have to work 5 years more and get less than you were promised previously for those 5 years extra work and contributions

It just comes across that stuff like this is fine but people have claimed millions in PPI etc for miss selling when lots knew exactly what they were doing

ROYALMAILCHAT