AFPS 75 Is it worth transferring it to a private pension

#1
Right I had a search but couldn't see anything.

I did 13.5 years with AFPS 75, when I left in 98 they gave me a forecast of £3500 per year at aged 60 with a lump sum of 3 x £3500 at 60. This would be index linked but I understand that the rate has been reduced the last couple of years.

Now my question is this, is it worth transferring this to a private pension?
I've seen this lot online

Armed Forces Pension Specialists | Pension Transfer - Cash In Facts

I've got 15 years till I'm 60, is it worth transferring the money to a private pension or keep it where it is?

I know I'm an old **** so no need to tell me.

Cheers Sunray
 
#5
All depends on your personal circumstances and what you intend to do in the future. There is no right and wrong or black and white. Moving from an final salary scheme is inappropriate for a lot of people, however if you're intelligent enough to look at the facts of the matter and understand the various risks involved then you're probably grown up enough to make your own decision.
 
#8
Join the Armed Forces Pension Society for £30 and ask them, they are the experts.
 
#11
And the main aim of a final salary scheme in an age of demographic lag is to pay out as little as possible for as short a time as possible.
Very True, so live as long as possible and rip them off! I have been drawing my pussers pension for 23 years and hopefully will do for another 23 years at the minimum.
 
#12
I have been involved in pensions for many years, and to be honest I would find it very hard find any justification for moving to a private pension.
You would be giving up many guarantees, such as level of income, increases in payment, spouse and dependant benefits.
You would gain investment risk, annuity / GAD rate risk and the risk of higher than expected management / adviser fees.
No contest really.

Leave well alone.


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#15
I have been involved in pensions for many years, and to be honest I would find it very hard find any justification for moving to a private pension.
You would be giving up many guarantees, such as level of income, increases in payment, spouse and dependant benefits.
You would gain investment risk, annuity / GAD rate risk and the risk of higher than expected management / adviser fees.
No contest really.

Leave well alone.


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Right. If you're going to give regulated advice step up and put your bloody credentials up and your FSA number. You have absolutely no idea of the OP's personal circumstances and are therefore acting contrary to the first principal of KNOW YOUR CLIENT! Which I believe is a breech of the FCA code of conduct.

Sometime its like watching ******* sheep.
 
#16
As others can confirm, Pension Transfers in the UK are highly, highly regulated - and so they should be. An error or mistake now may not become apparent for decades so there is a great degree of due diligence and research involved in the process.

This is done by the Financial Conduct Authority ( following from what was the FSA ).

Look at the site link above. The company is based abroad. There is NO statutory regulator information - effectively they are unregulated. They don't even give an address or phone number ffs! And having consultants in Iraq, Afghan and Muscat? My bullshit radar is going haywire on this one.

Don't get me wrong under some circumstances it can be more beneficial to switch BUT IT IS RARE. A proper report from a qualified and regulated adviser would cost around £1k.

Remember moving from a final salary scheme to a Money purchase scheme introduces a huge element of risk. FS you know what you get - no uncertainty. Although transferring out to a SIPP can let you access cash at 55 and make your own investment choices you then have the WHAT IF scenario - what if markets crash before you retire? What if you make a screw up in your investment choice? You could run out of money and your pension would be gone.

A lot of these companies will try and entice you to invest in property in the Cape VErde Islands or Belize for example - as soon as you hear that run and don't stop...
 
#17
As others can confirm, Pension Transfers in the UK are highly, highly regulated - and so they should be. An error or mistake now may not become apparent for decades so there is a great degree of due diligence and research involved in the process.

This is done by the Financial Conduct Authority ( following from what was the FSA ).

Look at the site link above. The company is based abroad. There is NO statutory regulator information - effectively they are unregulated. They don't even give an address or phone number ffs! And having consultants in Iraq, Afghan and Muscat? My bullshit radar is going haywire on this one.

Don't get me wrong under some circumstances it can be more beneficial to switch BUT IT IS RARE. A proper report from a qualified and regulated adviser would cost around £1k.

Remember moving from a final salary scheme to a Money purchase scheme introduces a huge element of risk. FS you know what you get - no uncertainty. Although transferring out to a SIPP can let you access cash at 55 and make your own investment choices you then have the WHAT IF scenario - what if markets crash before you retire? What if you make a screw up in your investment choice? You could run out of money and your pension would be gone.

A lot of these companies will try and entice you to invest in property in the Cape VErde Islands or Belize for example - as soon as you hear that run and don't stop...

Some sensible words from one of our Qualified and Vetted members. Yes Vetted by me!

A couple of points £1000 for a Final Salary Transfer report is Cheap.

In my opinion Final Salary schemes aren't as safe as they used to be and non funded schemes have their throats exposed to the political will of the government of the day. Hence the down grade of pensions in payment in the NHS pension from RPI to CPI and why old schemes are being replaced by newer less favorable ones. Just because your pension currently says it will pay you an inflation linked increase doesn't necessarily mean that it cant be changed to something like a 1% flat rate increase.Or a zero % increase, zero is a number (scheme trustee semantics)

The central government funded schemes, Armed Forces, Civil Service, NHS have not on single penny in them. There are more and more people drawing pensions and less and less people paying in. Its simple demographics and the baby boomers are now wanting back what they've paid into the system.

Also look at the language government has been using for about a decade, they call state a benefit! Once they start to apply that mentality you now that if you are expecting any form of pension from the public purse you need to be concerned. There are huge movements in the undercurrents of Pensions and Auto Enrollment should be the biggest indicator to anyone that it is Governments intention to walk away from pension provision within a few decades. The State Pension Pot will dwindle away and centrally funded schemes will be closed and gradually shrink to nothing over a period of around five decades from close date.
 
#18
As others can confirm, Pension Transfers in the UK are highly, highly regulated - and so they should be. An error or mistake now may not become apparent for decades so there is a great degree of due diligence and research involved in the process.

This is done by the Financial Conduct Authority ( following from what was the FSA ).

Look at the site link above. The company is based abroad. There is NO statutory regulator information - effectively they are unregulated. They don't even give an address or phone number ffs! And having consultants in Iraq, Afghan and Muscat? My bullshit radar is going haywire on this one.

Don't get me wrong under some circumstances it can be more beneficial to switch BUT IT IS RARE. A proper report from a qualified and regulated adviser would cost around £1k.

Remember moving from a final salary scheme to a Money purchase scheme introduces a huge element of risk. FS you know what you get - no uncertainty. Although transferring out to a SIPP can let you access cash at 55 and make your own investment choices you then have the WHAT IF scenario - what if markets crash before you retire? What if you make a screw up in your investment choice? You could run out of money and your pension would be gone.

A lot of these companies will try and entice you to invest in property in the Cape VErde Islands or Belize for example - as soon as you hear that run and don't stop...
Many thanks for that, my gut feeling was to keep my Army pension where it is as it's a known entity.
One of the lads at work has just transferred his army pension with that lot and wanted to scope it out.

I have a separate personal pension with Aegon with a few quid in it and looking at a rental property as a back up.

I would like to be taking it easy at 60 not grafting in B&Q.

Cheers Sunray
 
#19
Right I had a search but couldn't see anything.

I did 13.5 years with AFPS 75, when I left in 98 they gave me a forecast of £3500 per year at aged 60 with a lump sum of 3 x £3500 at 60. This would be index linked but I understand that the rate has been reduced the last couple of years.

Now my question is this, is it worth transferring this to a private pension?
I've seen this lot online

Armed Forces Pension Specialists | Pension Transfer - Cash In Facts

I've got 15 years till I'm 60, is it worth transferring the money to a private pension or keep it where it is?

I know I'm an old **** so no need to tell me.

Cheers Sunray
Oh yes, in the light of recent events you should definately consider moving your hard won index linked military pension, paid by those people who actually print all the lovely money, to some trustworthy and reliable merchant banking house waving a hat full of: wooly promises, wild speculation and loads of very small print!

Do it, do it now, do not delay!!!!!
 
#20
Oh yes, in the light of recent events you should definately consider moving your hard won index linked military pension, paid by those people who actually print all the lovely money, to some trustworthy and reliable merchant banking house waving a hat full of: wooly promises, wild speculation and loads of very small print!

Do it, do it now, do not delay!!!!!
This course of action sponsored by the Emperor Mong, catchphrase "you know it makes sense, what could possibly go wrong?".
 

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