CDC is getting ready for launch

[RobertT]

https://www.myroyalmail.com/news/2022/0 ... nsion-plan

Last year we told you about our plans to change the way people at Royal Mail save for when they retire:

Most people would stop building up benefits in their current pension plan and start building up benefits in a new plan: the Royal Mail Collective Pension Plan (the Collective Plan for short)
The new plan will give our people a cash lump sum and a wage in retirement.
Your feedback
We’ve gathered everyone’s feedback on these changes and finished our consultation with the unions.

Based on what we’ve heard, the unions and Royal Mail agree that the Collective Plan is the right pension plan for our people.

What happens next?
Some further changes to the law are needed to make the Collective Plan possible. We are working with the Government on this and, once we are satisfied that everything is in place, the Plan can apply to The Pensions Regulator for authorisation.

We hope to launch the Collective Plan by the end of this year or early 2023.

We will let you know when we have a launch date or if anything changes.

Your questions answered
A leaflet will be landing on your doorstep soon.

Click here to find out:

Who will join the Royal Mail Collective Plan
What happens to any benefits you’ve already built up
When you can take benefits in the Collective Plan.

[vmaxv4]

October 2022 or April 2023..
My guess is April 23

[NWpostie]

October 2022 or April 2023..
My guess is April 23

More time to save into my AVC I've been banging as much as I can into my AVC before the changes comes in, the problem with CDC is NRA67

[vmaxv4]

[pieoftheday]

October 2022 or April 2023..
My guess is April 23

More time to save into my AVC I've been banging as much as I can into my AVC before the changes comes in, the problem with CDC is NRA67

Could elaborate ie problem with cdc is NRA 67? Thanks

[pieoftheday]

October 2022 or April 2023..
My guess is April 23

More time to save into my AVC I've been banging as much as I can into my AVC before the changes comes in, the problem with CDC is NRA67

Could elaborate ie problem with cdc is NRA 67? Thanks

[heapsy]

He means it's an even later retirement age. Some will have 3 different pension ages, and that doesn't even include the State pension. That could be 4 different pension ages for some. What a disgrace. The CWU should be ashamed.

[renrag40]

He means it's an even later retirement age. Some will have 3 different pension ages, and that doesn't even include the State pension. That could be 4 different pension ages for some. What a disgrace. The CWU should be ashamed.

Ashamed? Pullinger? Don't hold your breathe for that to happen!! He thinks it's a wonderful deal that has been negotiated......... yet, he won't be joining the new pension scheme..... what a contradiction, given that it is such a wonderful deal... no, 30K+ will continue to be paid into his pension scheme as part of his pay and remuneration package paid from the subscriptions of the rank and file...... another great deal for his employers..... the membership of the union.

[heapsy]

Agreed. Complete disgrace.

[NWpostie]

October 2022 or April 2023..
My guess is April 23

More time to save into my AVC I've been banging as much as I can into my AVC before the changes comes in, the problem with CDC is NRA67

Could elaborate ie problem with cdc is NRA 67? Thanks

As the previous poster have said 3 different set of retitrement age....

When I started my AVC I planned to keep putting in the max as I planned to leave at 60, with a good lump sum, that plan is now curtailed because if I put into a CDC AVC it could mean having to wait until 67 to claim it, my AVC would be split into two elements.

If I claim my CDC pension early I would lose a percentage of it for every year below 67 and I don't know how it will affect the AVC that goes with the new scheme , not enough is known about it.

My plan was to claim all of my NRA60 and NRA65 at 60 including the AVC as I don't want to keep working to 65 or 67.

You see my point.

[yubin282]

So does anyone know what happens for those of us that don't want to work until age 67+.

[RobertT]

As the previous poster have said 3 different set of retitrement age....

When I started my AVC I planned to keep putting in the max as I planned to leave at 60, with a good lump sum, that plan is now curtailed because if I put into a CDC AVC it could mean having to wait until 67 to claim it, my AVC would be split into two elements.

If I claim my CDC pension early I would lose a percentage of it for every year below 67 and I don't know how it will affect the AVC that goes with the new scheme , not enough is known about it.

My plan was to claim all of my NRA60 and NRA65 at 60 including the AVC as I don't want to keep working to 65 or 67.

You see my point.

I agree there is no definite info on the two new CDC AVC arrangements.

But reading between the lines I would imagine the Lump Sum Booster would do as it says on the tin – it would increase the guaranteed tax free cash via the DBLSS, but may well be subject to deductions if taken before 67.

The other new AVC will almost certainly be very similar to Flexiplan.
If so, you won't be able to use it alongside your existing AVC's at 60, but I see no reason why you won't be able to transfer out(as you can with the current AVC's) rather than waiting until 67.
As it'll be a DC pot, it'll be worth whatever it's worth at the time you access/transfer it!

[RobertT]

So does anyone know what happens for those of us that don't want to work until age 67+.

Everyone's circumstances will be different, but as far as I'm concerned, it's ultimately up to the individual to ensure they can retire when they want to.

Most people will have more than one pension tucked away and those pensions will potentially be payable at different ages. Such as NRA60, NRA65 and state pension, plus maybe a DC scheme or two aswell.
CDC is another one to the collection!

Going when you want to could be a case of just managing what you've already got, it could mean having to save extra or perhaps working part time to supplement your income until SPA. Maybe all 3 of those things, maybe something else?

There isn't a one size fits all. But generally speaking, the younger you want to retire, the more you've got to fund it yourself.

[NWpostie]

So does anyone know what happens for those of us that don't want to work until age 67+.

Everyone's circumstances will be different, but as far as I'm concerned, it's ultimately up to the individual to ensure they can retire when they want to.

Most people will have more than one pension tucked away and those pensions will potentially be payable at different ages. Such as NRA60, NRA65 and state pension, plus maybe a DC scheme or two aswell.
CDC is another one to the collection!

Going when you want to could be a case of just managing what you've already got, it could mean having to save extra or perhaps working part time to supplement your income until SPA. Maybe all 3 of those things, maybe something else?

There isn't a one size fits all. But generally speaking, the younger you want to retire, the more you've got to fund it yourself.

My plan is to save as much as I can in cash reserve, AVC, work pension and lump sum with aim of sustaining myself until SPA kicks in.

[yubin282]

So does anyone know what happens for those of us that don't want to work until age 67+.

Everyone's circumstances will be different, but as far as I'm concerned, it's ultimately up to the individual to ensure they can retire when they want to.

Most people will have more than one pension tucked away and those pensions will potentially be payable at different ages. Such as NRA60, NRA65 and state pension, plus maybe a DC scheme or two aswell.
CDC is another one to the collection!

Going when you want to could be a case of just managing what you've already got, it could mean having to save extra or perhaps working part time to supplement your income until SPA. Maybe all 3 of those things, maybe something else?

There isn't a one size fits all. But generally speaking, the younger you want to retire, the more you've got to fund it yourself.

Stage pension age will probably be 70+ for me and I have no intention of working until that age.

If I can't get my "benefits" before age 67 with the new scheme, then I won't be joining it.