The RMDCP provides a pot of money with which you have a number of flexible options, more info here. It’s worth whatever it’s worth when you choose to access it – current minimum age is 55.joe712000 wrote:I'm currently a DC plan member with the option of transferring to the DBCBS.What would be my best option with a view to taking my pension at 55?Any advice would be much appreciated.
The DBCBS may provide a higher overall contribution rate to the RMDCP and it gives a guaranteed sum, but it has an NRA of 65. So any decision to access it before that age will incur a reduction.
Personally I think most people who are currently in the RMPP will be best served by sticking with the default choice of the DBCBS, to maximise their DB benefits, with taking their benefits at NRA being the best course of action. And using AVC’s and/or separate pension arrangements to fund early retirement.
Those currently in the RMDCP, joining the DBCBS will mean giving up the flexibility they have with DC in favour of a guaranteed pot at 65, which doesn’t really help if you want to retire at 55. So, if I was in the RMDCP, I think I would stay put.
But that’s just my opinion, and what’s best for you will come down to circumstances and choice.