56 year old subject to penalties for accessing pensions

Miiade

Op, to work out the reduction for taking the pension early, do the following.

Have a look at his latest pension statement sent last September, take 25% off the NRA 60 figure and 50% off the NRA65 figure. The difference between these 2 figures will be the reduction in cash terms (roughly)

You are aware that you can take up to 25% cash free by giving up some pension? This is worked out by taking his annual pension x 20, add any AVCs x 0.25 = max tax free cash

Good luck with your plans

Wiltsmum

As before I have left the thread up to help others. And FYI It feels like a penalty to us! I think this forum shouldn't be used to imply someone is stupid or to make superior comments. We asked a question and Mr Courteous was actually that and the most helpful. I would now like to cease receiving comments. Thank you.

xylophone

No,they closed the scheme entirely.

So RM retained a defined benefit pension but changed it from FS to CARE.

https://www.royalmailpensionplan.co.uk/section-c/your-pension/understanding-your-pension

How your pension benefits are calculated


When calculating your pension benefits, we add up the following parts:

Your final salary pension: This is the pension you’ve built up to 31 March 2008. It’s based on the number of years and days you worked up to then, and your current pensionable salary.
Your CSDB pension: This stands for ‘Career Salary Defined Benefit’, and is the pension you’ve earned based on your service from 1 April 2008 to 31 March 2018. Each year you earned another ‘block’ of this, and the blocks are revalued over time.
Your Cash Balance benefit: This means the lump sum you’ve earned on or after 1 April 2018.
This gives you the total amount of pension benefits you’ll get when you retire. We’ll show you what these are worth in your Benefit Illustration.

The contribution rates – for your own contributions and those paid by your employer – could change in future.

Benefits earned to 31 March 2012 are paid from the RMSPS. However, any increase in pre 2012 benefits in excess of statutory increases, attributable to increases in pensionable pay, will be paid by the RMPP .

custardy

Wiltsmum wrote: »

As before I have left the thread up to help others. And FYI It feels like a penalty to us! I think this forum shouldn't be used to imply someone is stupid or to make superior comments. We asked a question and Mr Courteous was actually that and the most helpful. I would now like to cease receiving comments. Thank you.

Would you prefer locked access to full pension at 65?

AnotherJoe

custardy wrote: »

Would you prefer locked access to full pension at 65?

Of course not, they'd like an extra ten years of pension free gratis and for nothing.

BoGoF

Whether OP wants to hear it or not it was, at best, naive to expect the exact same pension at 55 as when 65.

And the only 'superior' comment I read was OP's own when boasting about their large pension and being on the beach. Smugness at its best.

Wiltsmum

I did not ask for any more comments. Did your mother never tell you if you can't a say anything nice, don't comment.

My comment about my pension obviously made you unhappy. I don't expect abuse about a material fact. It was meant light heartily. You obviously spend a lot of time on this site, I wonder why.

custardy

Wiltsmum wrote: »

I did not ask for any more comments. Did your mother never tell you if you can't a say anything nice, don't comment.

My comment about my pension obviously made you unhappy. I don't expect abuse about a material fact. It was meant light heartily. You obviously spend a lot of time on this site, I wonder why.

Sorry, facts are neither nice or not nice.
Im neither happy or unhappy. I thought this thread was about your husbands pension,not yours?
I do note you make some snippy comment at the end about me being on a site, you came to as your husband of 30 years doing 14 hour shifts (cough) couldn't get an answer.
Would you rather there were no people here?

Wiltsmum

My comment was not to you. It is my husbands pension and as of yesterday I have my answer. I am not smug but trying to help my husband who has worked like a dog for years, is ill and needs to access his pension.He didn't understand and as my pension is not the same nor did I. I will not be using the forum again and have taken the post down..
We have ill health to deal with and do not need to be subjected to abuse at this difficult time. Thank you to those that offered kind advice.

Wiltsmum

Mr.Generous wrote: »

Lets run some made up numbers.

Pension at 65 £20k

Take it at 55 £10k

So by age 65 you would have been paid £100k
You would have to live 10 years longer to break even.

But you would have had the money while you were younger and healthy enough to enjoy it. Presumably you get a tax free lump sum too, make use of that 10 years earlier.

You could use average life expectancy but isn't it more about quality of life than having a bit more money when your 77?


I'm taking mine at 55. Next year. I can't wait!!

Thank you for this . It made sense to my husband. I have taken the thread down now due to personal comments but you were very helpful.