cashing out army pensions

Discussion in 'Army Pay, Claims & JPA' started by gazprids, Oct 20, 2008.

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  1. Hi
    Can any one tell me how i would go about cashing out my army pension. just been laid off and need the money while its still worth something.
    hope you can help thanks.
    Gaz
     
  2. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    You can't.
    A Pension is just that, a pension, not a saving scheme.
     
  3. You put it far more eloquently than I could, OB!

    Litotes
     
  4. From the BLESMA October 2008 newsletter:


     
  5. My brother drew his Army pension early because he had cancer, he was given a lump sum and weekly pension until he died.
     
  6. In general, you can't. Unlike a personal pension which is portable and has a cash value that varies with the value of the fund in which it is invested, the military pension does not have a value.

    Now, this all "AFAIK" and for the 1975 version. If you have completed 10 years of service and have left, you will have frozen your pension until you are 65. If you are not married, I am certain that the pension dies with you, should you croak before you are 65. If you are married, your missus collects 50% until she croaks or remarries. If you are dying now, you might be able to release the pension but not the cash.

    If you are still serving, and decide that you would prefer a personal pension, I would tell you to lie down in a darkened room and wait for the feeling to go away. But, you could then take it away, and perform financial wizardry on it and turn it into a much smaller pot of cash. However, most of that would exploit loopholes or be against HMRC rules!

    Litotes
     
  7. K13 - don't think that being laid-off can be classed as 'ill-health'.

    Amended to add: 2 complete years (or more) of adult service entitles you to reserved rights.

    ..............but YOU have to tell AFPAA when you reach 65.
     
  8. Not at all ... but all he has to do now is go stamp on a landmine ... worked for me :D
     
  9. A touch extreme.............but I can acknowledge your position *shiver*.
     
  10. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    There is a difference between drawing a pension early and cashing one in, which is what was asked.
     
  11. Stands back ... told 8O