How money goes into your pension pot
As an RMDCP member, you don’t have to do anything to save into your pension pot.
Every time you get paid, you’ll automatically save some money into your pension pot. Royal Mail will automatically add money into it too. And, because you don’t pay tax on the money you save into a pension, you get tax relief from the government on top. This means that, for most members, every £1 you save only reduces your take-home pay by 80p. Royal Mail then add money on top of that.
The more you save into your pension pot, the more you’ll get from Royal Mail, and the more you’ll get as tax relief
After a year in the RMDCP, you’ll save 6% of your pensionable pay, and you’ll get 10% from Royal Mail. If you want to, you can choose to save less – 4% or 5% – and get less from Royal Mail.
Here’s an example of how your money could build up:
Working a 25-hour week
Working a 39-hour week
Earning about £300 a week
Earning about £480 a week
You put in
6%
5%
4%
6%
5%
4%
You give up this much take home pay a week
£14.40
£12.00
£9.60
£23.00
£19.00
£15.00
This is added because of tax relief
£3.60
£3.00
£2.40
£6.00
£5.00
£4.00
Royal Mail add this much
£30.00
£27.00
£24.00
£48.00
£43.00
£38.00
So in total, this much goes into your pension pot every week
£48.00
£42.00
£36.00
£77.00
£67.00
£57.00
You could get even more money by moving to the Cash Balance Scheme
The Cash Balance Scheme is a different Royal Mail pension scheme. For nearly everyone, moving to the Cash Balance Scheme would mean more money going into your pension pot.