Can i defer my royal mail pensions

Royal Mail offers a defined benefit pension scheme, known as the Royal Mail Pension Scheme (RMPS), which is a final salary scheme. The scheme is closed to new members, but existing members can continue to accrue benefits.

As a member of the RMPS, you may be able to defer your pension benefits, but there are some rules and considerations to be aware of:

  1. Deferred pension: You can choose to defer your pension benefits, which means you won't receive a pension payment until you reach the normal retirement age (currently 65). During this time, your pension benefits will continue to accrue, and you won't receive any pension payments.
  2. Deferred pension payment: If you defer your pension, you'll receive a lump sum payment when you retire, which will be based on the value of your deferred pension benefits at the time of retirement.
  3. Tax implications: Deferring your pension can have tax implications. You may be subject to income tax on the lump sum payment you receive when you retire.
  4. Impact on State Pension: Deferring your Royal Mail pension may affect your State Pension entitlement. You should check with the UK Government's State Pension calculator to understand how your Royal Mail pension will impact your State Pension.
  5. Scheme rules: The RMPS has specific rules regarding deferral. You should check the scheme's rules and consult with the Royal Mail Pension Scheme administrators or a financial advisor to understand the implications of deferring your pension.

To defer your Royal Mail pension, you'll need to:

  1. Contact the Royal Mail Pension Scheme administrators to express your intention to defer your pension.
  2. Complete a form to confirm your decision to defer.
  3. Ensure you understand the implications of deferring your pension, including any tax implications and potential impact on your State Pension.

It's essential to carefully consider your decision to defer your Royal Mail pension, as it may affect your financial situation and retirement plans. You may want to consult with a financial advisor or the Royal Mail Pension Scheme administrators to discuss your options and ensure you make an informed decision.