Royal Mail pension

[mclovin]

I no longer want to contribute to a pension scheme, I'll take the state pension when I get to 65. But how do I go about getting back the contributions that I have paid for over 16 years?

[DGP1]

You can't, all that will happen is that your pension will be frozen until you can take it.

[Lincox]

Seriously Mclovin, I don not know your situation, but I would take advice before you cancel your contributions.

[mclovin]

My dad contributed from 1979 to 2009 and he wishes he hadnt bothered. Doesn't get dental care, council tax benefit or other things that people who have state pension get.

Frankly, why bother having a pension if all you're gonna get is penalised? Seems pretty pointless.

I wan the money I have put in, nothing more nothing less.

[NWpostie]

All pension liability have now been taken over by the Government, which means its secure and there is a guaranteed payout as the Treasury has underwritten it, any pension after that would be career average, even then its covered by Pension regulations and run by RM which means they cover the admin cost.

I would be leaving it alone if I were you McLovin, state pension is not much.

Take financial advice before you proceed,

[redman]

You can't get your pension back, unless you are aged 55. Then you can take the part that was taken over by the Government. The Defined contribution bit you take after 55 if you leave the business or at any time over 60 if still here.

[RobertT]

My dad contributed from 1979 to 2009 and he wishes he hadnt bothered. Doesn't get dental care, council tax benefit or other things that people who have state pension get.

Frankly, why bother having a pension if all you're gonna get is penalised? Seems pretty pointless.

In other words you want to rely on state handouts that might not always be there. Did you know that there are plans for a 'flat rate state pension' where means tested benefits will no longer be available?

I wan the money I have put in, nothing more nothing less.

You recieve tax breaks from the government and well as employer contributions on the basis that the money is held in trust until you're at least 55.

You can't get your pension back, unless you are aged 55. Then you can take the part that was taken over by the Government. The Defined contribution bit you take after 55 if you leave the business or at any time over 60 if still here.

You can take all of your pension at 55 if you want, but it will be acturially reduced.

[mclovin]

Yes that's right, tell me why i would want to have a pension and have to pay council tax, dental care and get taxed on it when I could have a state pension and have all these things paid for. No wonder the government want us to have a pension.

So the answer is no, but I can take the lot at 55? Which I probably will.

[TrueBlueTerrier]

Yes that's right, tell me why i would want to have a pension and have to pay council tax, dental care and get taxed on it when I could have a state pension and have all these things paid for. No wonder the government want us to have a pension.

So the answer is no, but I can take the lot at 55? Which I probably will.

I think there will be some penalty for either taking the pension early (5% per year) or taking the pot and investing it somewhere else.

Might be worth reading this, as you never know taking your pension at retirement may not bar you from claiming all the benefits, but if you have taken it early you may not be able to claim any more than if you had not. For such a wide reaching decision I would get independent financial advice.

http://www.cwudurhamcounty.org/document ... SEARLY.pdf" onclick="window.open(this.href);return false;


I also don't think its impossible that the State Pension and benefits will be much reduced if the Conservatives are in power for another 30 years.

[RobertT]

Yes that's right, tell me why i would want to have a pension and have to pay council tax, dental care and get taxed on it when I could have a state pension and have all these things paid for.

Most people will get a state pension of some sort, and assuming you have paid the full 30 years of National Insurance, you will get the full state pension. Some people will also be eligable for extra pension in the form of SERPS now known as State 2nd Pension, which is also based on NI contributions over your working life.

At the moment if a pensioners income is below a certain limit they can get means tested benefits which may include the things you mention. But there are plans in the pipeline to take some or all of these benefits away in return for a higher basic state pension.

No wonder the government want us to have a pension.

Yes the government wants to save money by encouraging workers to pay into a pension and they're increasing the state pension age too, so unless you were born before December 1953, you won't get your state pension at 65 I'm afraid.

So the answer is no, but I can take the lot at 55? Which I probably will.

You can commence the payment of your RM pension anytime after 55 as long as the company agree. Whether it's a good thing to do is debatable.

I think there will be some penalty for either taking the pension early (5% per year) or taking the pot and investing it somewhere else.

The penalty is based on acturial valuations, but 5% per year is a good ball park figure.

It is possible to transfer your RM pension into a stakeholder/personal pension, but why anybody would want to throw away index linked income for life is beyond me. Plus, that sort of transaction has to be done by an IFA and most if not all will refuse to do it because it's not in their clients best interests and will potentially leave them open to legal action in the future.

[P13]

I no longer want to contribute to a pension scheme, I'll take the state pension when I get to 65. But how do I go about getting back the contributions that I have paid for over 16 years?

Depending on your age now you may not get your state pension at 65

[WHITEANT]

I took my pension at 55 ,best thing i ever done ,i can enjoy things .Whats the use in waiting till your 65 ,all these cancers ,demensior etc just waiting to nobble you then what good is a pension to you enjoy life at its peak

[Lincox]

In many respects I agree with Whiteants sentiments. Although there may be a considerable reduction at 55 because you are taking the pension early, you also have to bear in mind the money you will have already pocketed by the time you reach 65 or whatever retirement age is when you get there. It could possibly take you another 17 years or more to have drawn the same amount of money from your pension if you take it at 65 compared to 55. On the other hand you may have spent all the money by the time state pension comes along and then you may possibly struggle on a lower income. At the end of the day, you must make your own decisions but it is sensible to have all of the pros and cons in front of you in order that you can make a decision that is right for you. There are no wrongs and rights. It is an individuals choice backed up by sound financial advice.

[stodgy88]

i took my pension at 52 ,the £210 after tax i get every month,influence me into cutting my hours and only working three days a week,cant beat it.

[Lincox]

The rules have changed now Stodgy. At one time you could take benefits from 50 onwards, but now it is 55.