NRA 65 Actual Figures

[Duran]

Thank you postie2007 for confirming the figure and disappointed that Duran had basically in the previous called me a liar. Perhaps he is now man enough to apologise.

For info I was in Addplan for a few years not sure that affect this pension but it might.

Also due to inflation they are doing some kind of special enhancement for everybody until December 31st this year.

Still happy to provide the figures to anybody who would like them

Hawkey99. I didn't call you a liar. I said i find it hard to believe. My Pensionable pay for a year is currently just over £34000 my cash balance is in excess of yours. Yet my statements are lower. That is only 6 years pension. You still await capitas 2 years. 2010-2012. I'm sorry you think i have attacked you.

What i have noticed in option 2. Your cash balance is not showing. Why is this? On paper option 1a looks the best . Would like to know why cash balance is no longer there for option 2. I would question that.

[Duran]

Forget above post. I have just read the part, all pensions are being enhanced until December 2022. This answers my question. Maybe time for all of us over 55s to get statements. see if its worth taking early.

[Hawkey99]

My Decision

I thought I would share my decision and its logic and see if others had any others thoughts or advice.

Firstly I am very clear that taking my NRA 65 just over 5 years early is in normal circumstances a very unwise thing to do. My reason for taking it is I was Ill Health Retired recently and sadly have a high likelyhood of not making it to a grand old age. For perspective If I got pass 70 I would consider this a very good result. 75 would be amazing. I am 60 in February. Please no post of sympathy.....

I have decided to take option 2 which is
£2920 annual pension plus a tax free cash sum of £19,452.30. My reasoning for this is as above shorter life expectancy.

With regard to my cash balance fun of £31,181 I have decided to move this to another provider. The reasoning being I don't need this money for a few years and it's better to invest the full £31,181 into a SIPP and then hopefully the investment return will hopefully nullify the tax that would be due in a few years on the original £31,181.

£31,181 - 25% tax free amount = £7795 Tax Free

Remainder (£31,181-£7795 = £23386

£23,386 - 20% Tax = £18708....Tax of £4677

So my total tax free amounts would be £18708+£7795= £26503


Any thoughts on the above????

Thanks

Hawkey

[RobertT]

There's been a lot of debate on this forum over the years around taking pension benefits before NRA, which is something there's always going to be disagreements about.

The general answer to that question, is taking your pension before NRA is a bad move. Because based on averages, you'll get a lower return, both in terms of the amount per month and over the course of retirement, compared with taking them at NRA.

It's often said that you won't need money when you're older. But I have elderly parents in their late 80's/early 90's and in their/my experience, the idea that you'll need less money as you age isn't really true. You just spend it on more basic things instead.

RMSPS info says that members live to the national average. But in practice nobody is average!

Which leads us to the other answer, which is that everyone is individual and our personal circumstances are always going to be a bit different to everyone else.

In your case Hawkey99, you've got a genuine reason to take your benefits early, and I can understand your reasoning. With the only caveat being, to make sure what you leave behind for your spouse/dependants is enough for them.

Based on posts on this forum, I can't help thinking that too many people don't really think things through properly and take their pensions early and for the wrong reasons!
I don't believe you've done that.

[Hawkey99]

Forgot to mention that have also offered me a monthly or quarterly pension...

I think that option is new....

[RobertT]

Forgot to mention that have also offered me a monthly or quarterly pension...

I think that option is new....

My mate took his NRA60 about 2 years ago and was given the same option.

[postie2007]

Hi
Question for Hawkey99 or anyone else who knows.
How long does it take for your quotes to arrive after the date you applied for them. Also do you have contact capita for their quote.

TIA

[Hawkey99]

Well theres a story....

The first bit is easy. I only contacted RMPP who said they would inform Capita.

RMPP sent me the Lifetime allowance paperwork and my figures for them which was 5 weeks after I first contacted them.

RMSPS have not sent anything at all. There were 100 excuses when I rang yesterday including "Oh yes this usually happens you will receive your quote at some stage" So that one could be a long long time...

[FAB]

Hawkey99 are you a postie or work in a MC? Wonder if that can explain different rates of Pension amount.

[Hawkey99]

I was a Postman for many years, then a manager....

[postie2007]

Thanks Hawkey99 for the info I will be contacting Capita as soon as I get RMPP quote.