What age do you plan to retire from Royal Mail

anini · Post by **anini** » 26 Feb 2018, 11:18

The new retirement age for the new CDC pension has been set at 67 with a target CDC pension of 1/80 of pensionable pay + RPI revaluation. Member would be able to take their pensions on an actuarial reduced pension. 1/80 is a target rate and has no guarentee much like a DC pension. I wanted to know if the CDC pension is better or worse for people than a straight up DC pension. You can start withdrawing from a DC pension 10 years before state retirement age without financial penalties. I do not know what the actuarial reduction is as it is not in the current document.

Post by **RobertT** » 26 Feb 2018, 14:57

Generally DB is always the best way to go given the choice, and the CDC scheme is trying to emulate the benefits a DB pension, plus it has higher employers contribution rates.
Some will want the ‘wage in retirement’ that it’s aiming to provide, but the downside is having to wait until 67 to get it, unless you’re willing to take a reduction.

Other people will want the flexibility of a DC scheme and the ability to get at their pot from the current minimum age of 55.
Since the ‘pension freedoms’ were introduced in 2015 and the requirement to purchase an annuity was ended, DC schemes have become a good vehicle to use to enable early retirement, or to supplement a DB pension before the state pension kicks in.

However, it is currently unclear whether we will actually be given the choice between CDC and DC, or whether we will all go into the CDC scheme.

The increase in the age that people can access their DC pensions hasn’t yet been made law, and the government hasn’t yet decided when that increase will happen either. This article gives more info.

Personally, I plan to retire at 55.

anini · Post by **anini** » 26 Feb 2018, 15:09

We were told at the briefing that they plan to close the DC scheme once the CDC scheme is ready.

Post by **Lincox** » 26 Feb 2018, 15:53

It appears to me that the difference between a CDC scheme and a DC Scheme is in the flexibility of investment. The CDC scheme will somewhat mirror a with profit fund whereby the risk of rises and falls in the stock markets will be smoothed over the medium to long term by applying annual bonuses based on the profits made by the funds. In order to provide a wage in retirement there will be a set level of bonus addition required to provide a 1/80th payment. Should bonuses be favourable a higher level of pension could be provided but a lower level of bonuses would mean that a 1/80 payment would not be achievable. Herein is the risk.
With a DC scheme, the individual invests his/her pension pot in a spread of investments to suit personal choice in respect of risk prepared to take. The higher the risk the greater the possible pension but also the possible disappointment of a much lower pension.

UnhappyGremlin · Post by **UnhappyGremlin** » 26 Feb 2018, 16:07

My personal plan is to retire at 60.

Unfortunately, it seems RM and the Government don't share this view, and instead prefer that I die before getting any pension.

Post by **rambo1** » 26 Feb 2018, 16:09

I'll be going at 55 and either taking a cut or deferring until I can start withdrawing without a cut whatever age that may be. No way I'm gonna cripple myself in this job any longer than 55 .

k979aaa · Post by **k979aaa** » 26 Feb 2018, 16:15

55 if I can make it but it may be sooner than that and find another calling in life!

BeamishStout · Post by **BeamishStout** » 26 Feb 2018, 16:29

Going in April this year just after my 60th.

NWpostie · Post by **NWpostie** » 26 Feb 2018, 18:30

The NRA67 is a deal breaker as far a I'm concerned.

Most expect to retire at 60, to be told you going to have to wait another 7 years is a kick in the teeth for those planning for retirement at 60 only to be told at the last minute "Sorry, the goalpost has been moved"

So it's a NO from me.

k979aaa · Post by **k979aaa** » 26 Feb 2018, 18:42

NWpostie wrote:The NRA67 is a deal breaker as far a I'm concerned.

Most expect to retire at 60, to be told you going yo have to wait another 7 years is a kick in the teeth for those planning for retirement at 60 only to be told at the last minute "Sorry, the goalpost has been moved"

So it's a NO from me.

The DB scheme is 65 that is the one we are in till 31 03 2018 The old proper pension scheme was 60 as you say what is to say in future it maybe 70 or 75 with even less nothing is regulated as that is what this government wants gullible workers being made to save for their futures with no guarantees and little hope of retirement! It is no wonder the conservative party is in crisis new members DOWN candidates for office seats DOWN voters DOWN as they die off with their gold plated pensions a party that sold the family sliver now has nothing but terrorists to back them up to get them over the line!

ted_e_bear · Post by **ted_e_bear** » 26 Feb 2018, 18:47

I'd love to go at 55 but that's only 4 years to go so prob won't be able to afford it, I reckon by the time I'm 60 I'll be ready to go and hopefully get an 'easy' non physically demanding job.

No chance of doing this up to 67 it'll kill me off !

UnhappyGremlin · Post by **UnhappyGremlin** » 26 Feb 2018, 19:12

ted_e_bear wrote:I'd love to go at 55 but that's only 4 years to go so prob won't be able to afford it, I reckon by the time I'm 60 I'll be ready to go and hopefully get an 'easy' non physically demanding job.

No chance of doing this up to 67 it'll kill me off !

I believe you've spotted the plan.

anini · Post by **anini** » 26 Feb 2018, 22:33

I'm still in my 30s and I can't see my self doing this past 55. I would preferably liked to go part-time or change to a less demanding job until 60. The problem I see for a lot of people is pre-pension poverty in this scheme. If people do draw their pensions before 67 they'll have to take a financial hit and that defeats the whole purpose of the CDC scheme. At least with a DC scheme there would be no financial penalty. Both schemes are based on risk and have no guarantee rate of return . I believe the union went out of their way to unsure the closure of the DC scheme (when the CDC it ready) just to tick the Single Pension for all box. RM were willing to contribute 13.6% to the DC before in their final offer before the ballot. That has now been reduces to 10%. Why would the union agree to 10% if 13.6 was the RM offer.
I can't see many people labouring on until 67 on deliveries especially with the increase in outdoor work that is projected.
The main reason I started this poll is because most people in my office have taken their retirement at 60 or before. Very few have worked until 65. Poeple currently in their 50s want to get out asap. With the increase in the nra to 67 alot of people will be disappointed especially younger posties. CWU should have known that most people won't work till 67 and worked out the best options from that point of view.

Dorset Plodder · Post by **Dorset Plodder** » 03 Mar 2018, 10:16

I believe the CWU and RM should be designing a strategy to enable their older staff to move to Part Time (if they want it) as they get older. I have a lot of friends who took early retirement at 55. They're not all sat around at home watching Cash in the Attic, after a break most of them have found Part Time Jobs, some voluntary, just to get out and about, and perhaps make a bit of cash.

Very few people nowadays can afford to stop working at 55. Basic maths : IF average wage was £20K and you'd retire at 55 (instead of 65) you'd be "losing" £200K! How many people could afford to lose basically the price of a house?

I think a lot of us are deluding ourselves. Yes it would be nice if we could hang our boots up at 55, and we could continue to enjoy the same life style...... But unless you're a pretty smart cookie, and you've been long term planning for retirement since your 20s, then you must face up to the realities of life.

I believe a better option would be for management to realise that perhaps older Posties can still contribute to the business but might need/want some allowances made to their duties. Perhaps the opportunity to take a career break at 55 ( maybe several months during which time your job would be safe) and then return to something like a 3 day a week Part Time Duty. These would need to be structured duties and not just a "Rent A Postie" getting mucked around again like a Newbie. In the past we've had two Posties who proposed doing a job share, because they both wanted less hours. This was kicked out and they both left the Business.

Seems to me to be a Win Win situation. RM keep experienced staff (they've got a problem recruiting).... no need to pay more leave as it'd be Pro Rata (might be a problem if both were sick)..... Posties could have a career break to do that Special Holiday before they're too knackered...... they'd come back to less hours/less burden..... and they'd still have some income, if reduced.

loverman shabba · Post by **loverman shabba** » 06 Mar 2018, 15:23

no way I could do this job for another 30 years. don't wanna be a cripple in retirement

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