30 years 55 years old

exaandt · Post by **exaandt** » 11 Jun 2019, 12:39

Hello all just a quick query I'm 55 next year and will have done 30 years next year a lot of my colleagues have taken there old pension and lump sum at 55 and some even taking there 60 pension at 55 does anyone know of any pitfalls to be wary of if I do the same

robbertwhitton · Post by **robbertwhitton** » 11 Jun 2019, 14:27

I guess each is different,how off you are financially etc,I’m 57 and done 37 years,took all my lump sums at 55 ,treated me and wife with cruise and holiday put rest away,there will be many experts on here to advise etc,under the “can’t take it with you umbrella,but it’s your call,get a lump sum quote and see,I’m keen to leave to be honest it’s all gloom and mismanaged,and hate the double standards within management and penny pinching etc,good luck my friend

Post by **RobertT** » 11 Jun 2019, 15:13

In general, taking your pension early is a bad move for most people, because:

1. Both your pension and your lump sum gets reduced by 5% per year before NRA, so if you take all your pension at 55, your NRA60 benefits will be reduced by 25% and your NRA65 by 50%. Those reductions will be with you for life and so you'll have less to live on when you actually retire.
2. If you're still working you'll probably pay income tax on your pension as it's classed as earnings, meaning another 20% hit.
3. If you take all of your pension or just the NRA65, you'll no longer be a member of the RMPP, so won't be building up any more benefits via the DBCBS. The extra money in your pocket will be a lot less than what you're giving up by not being a member, and any payments on your death might be reduced too.
4. Based on average life expectancies, you'll get less overall than if you take it at NRA.

There is some info on the RMPP website which you might like to read, pay particular attention to the 'flexible pension' guide: https://www.royalmailpensionplan.co.uk/ ... erent-ages" onclick="window.open(this.href);return false;

bensonhedge · Post by **bensonhedge** » 11 Jun 2019, 15:59

Maybe financially worse off but until time is for sale on the shelves I know my prefared route. Good luck.

2Shedz · Post by **2Shedz** » 11 Jun 2019, 17:27

Im 55 in june and have hot 35 years and one month.
Im leaving and ill just leave my pension there till im 60.
Does it go up by 2% or something even if you are not paying in?
Smiffy

Post by **Navalron** » 11 Jun 2019, 17:52

There's always a lot of quotes on here about how much you lose by taking your pension early but you need to take into account how many years extra it's getting paid out for. Robert T should have the figures but you break even at about 82 years old. I don't know many of the old posties that I worked with that made it much past 15 years past retirement. Maybe it's just a Glasgow thing where life expectancy is deal anyway.

Post by **RobertT** » 11 Jun 2019, 18:34

My figures based on just the pension, show you will break even at around age 75. But factoring in the reduced lump sum, it's likely to be closer to 70.

Post by **Navalron** » 11 Jun 2019, 18:56

Thanks Robert T, I knew you would know, lol

exaandt · Post by **exaandt** » 11 Jun 2019, 22:10

Many thanks for all the help
This site is truly independent and you get true advice
Cheers

Post by **RobertT** » 12 Jun 2019, 04:36

2Shedz wrote:Im 55 in june and have hot 35 years and one month.
Im leaving and ill just leave my pension there till im 60.
Does it go up by 2% or something even if you are not paying in?
Smiffy

Your pension will go up with inflation each year until you take it, and also while in payment.

Dorset Plodder · Post by **Dorset Plodder** » 13 Jun 2019, 14:11

RobertT wrote: Your pension will go up with inflation each year until you take it, and also while in payment.

Excellent Advice as always Robert T.

Does the NRA65 kick in at age 65 (regardless of your actual National Retirement Age)? Because I'm a Spring Chicken my National Retirement Age (for Government Pension) doesn't kick in until 67

I've taken your Advice in the past and didn't take the payout at 55, but will look at it again at 60

Keep up the Good Work!

Post by **RobertT** » 13 Jun 2019, 16:44

Dorset Plodder wrote:
RobertT wrote: Your pension will go up with inflation each year until you take it, and also while in payment.
Excellent Advice as always Robert T. Does the NRA65 kick in at age 65 (regardless of your actual National Retirement Age)? Because I'm a Spring Chicken my National Retirement Age (for Government Pension) doesn't kick in until 67 I've taken your Advice in the past and didn't take the payout at 55, but will look at it again at 60 Keep up the Good Work!

Yes the NRA65 kicks in at 65 regardless of when your state pension age is, which is 67 for me too!

Thanks for the kind words.

2Shedz · Post by **2Shedz** » 13 Jun 2019, 17:37

Thanks for the info Robert T
appreciated
Smiffy