A ‘call to action’ if you’re over 45 …

In the most recent issue of the ‘Pensions Buzz’ newsletter, we set out five questions that you need to ask yourself in order to get the most out of the RMDCP. Two of those questions are particularly relevant if you’re over 45:

  • Do you expect to retire (by which we mean start taking benefits from the Plan) at your selected retirement age (usually 65)?
  • Is your fund choice appropriate?

Selected retirement age

As a reminder, your selected retirement age (which is 65 unless you have advised Scottish Widows that a different age should apply) will determine when your pot is switched (in phases) into lower risk funds which aim to protect the pot’s value. This switching will occur automatically unless you have opted to self-select (one or more) funds rather than participate in a Lifecycle option.

Fund choice

The default Lifecycle option assumes that you will take your pot as one or more cash sums close to your selected retirement age. Many members have chosen to take their pot as cash and the default Lifecycle has been an appropriate choice for the majority of members.

However, average pot sizes are increasing, and annuity rates have improved significantly since 2021. Therefore, more members are choosing to transfer their pot to an annuity provider (or to draw down their pot over several years). There may be better fund choices than the default Lifecycle for the increasing number of members who do not wish to take their pot as a cash sum.

In addition to the default Lifestyle option, you can also choose from:

  • The 5 Year Royal Mail Lifecycle Strategy, designed to suit members who expect to take most of their pension benefits as cash but who wish to remain invested in riskier assets for longer;
  • The 10 Year Royal Mail Annuity Strategy which is a Lifecycle option that has been designed for members planning to use their pot to provide a lifetime income;
  • The 10 Year Royal Mail Flexible Retirement Strategy which is a Lifecycle option that has been designed for members planning to keep most of their pot invested beyond retirement and to take it over a number of years; or
  • Do It Yourself option where you can choose and manage your own investment mix from the available funds and the Lifecyle options.


If you wish to change your selected retirement age and/or your fund choice, please complete a changes form and send it to Scottish Widows.

All the best, Tim

(Tim Spriddell, Trustee Executive)

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