Advised not to take 5 year money...whats the catch?

Rumour mill tells me that If I dont take my 5 year money, and wait til my 8 year money I get a hell of a lot more. Something don't seem right with this, so if any pay guru's could help explaining this it'd be appreciated.
If I was at a unit where I could ask I would, but all I get is ..... "Il look for the Jsp" , or "Il find out and get back to you".
Damn - I've packed my office ready for an arms plot move!

It's pukka - you'll get more the longer you wait - if you know you're gonna do the full stretch you can wait for up to 12 years I think and get 15K? (not facts, just bad recall of a letter that was on my desk last week). I do know that the longer you wait to calim it, the more you get - so if you're staying in anyway, just wait and get loads of money for doing nothing more than what you planned to do anyway..............

I've still got it on DII somewhere so If the green hats haven't given you chap/verse by monday, I'll dig it out - its a REME specific letter mind............
Sorry mate but that's not quite what it says!

Anyone passing their four year point from next year (Apr 2009) can claim the new bonuses. Anyone who has reached 5 years before that remains on the old system of 5 & 8 year claims.

If you wait until your 8 year point you will just get the 5 & 8 year money in one go rather than in two.

The new bonus system is quite complicated but in a nutshell a soldier gets 2 bites of the cherry. Depending on how long they wait for the first bite will influence how much they get. The most they can get is one payment of £15k (less tax and NI) at 8 years.

Anyone who has served more than 3 years will not qualify for the new bonus.
It's all very well saying you'll get more money the longer you wait but remember: the money is subject to tax! The longer you wait, the higher basic salary you'll be on and the further into the higher tax band bracket your earnings for that year will be when you collect the bonus. I'd suggest sitting down and doing a few calculations because you may well find that by taking two smaller sums of money earlier on, it could leave you with more money actually in your pocket...just a thought. Any wouldbe financial advisors out there care to tell me I'm talking b***ocks???
take it now buddy , also they will change the goal post buy the time your 8 yr piont comes, just to fcuk you over, the army is great at it
taking it early and investing it in your ISAs would probably earn you more money without worrying about tax.... Then again how many soldiers are in a position where they dont need to worry about tax!.....

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