Topping up pension once left the Service.

Discussion in 'Armed Forces Pension Scheme' started by amazing__lobster, Aug 8, 2007.

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  1. I'm just in the process of finding out about topping up Army pension, from Scotch Widows, now I've left and joined the ranks of Civ Div. And I'm just wondering if anybody else out there has has decided to pay into their existing Army Pension, or is this quite unique?

    Obviously I'm going to look into this very indepth as this is probably one of the most singular investments I will ever make, but I would also be interested in other peoples opinions of doing this, as opposed to setting up a separate pension.

    Cheers for any replies in advance :D
  2. If you do find out how to do it for the 1975 Scheme, let me know. In this day and age there is no such thing as a final salary scheme in the private sector even though I managed ten years in them until May this year.
    The military pension is gold plated and must stack up very well against anything out here in the civvy world.

    If they are only offering AVCs in one of their own funds do shop around and get some very good Financial Advice.
  3. Cheers for the advice, Western. I'm not sure what scheme I'm on, but I joined in '98 (left almost two years ago) and didn't change schemes.

    They emailed me earlier for some details to check that I'm on the reserve list, so I'll post on here when I get some more info.

    Maybe, as I think this may be an area not many have experience in, the the info will prove useful for others,
  4. Anybody with a brain cell must go for the AVC's .

    I tried to start when in the Kate in 1989 - trouble was nobody in the pay Corps knew WTF I was on about, as a full screw they all said ..

    "Its for Vet Officers or Doctors only"

    And next yer the same and the same (bunch of people who know nothing about tax breaks and compound intrest- why should they , only work with pay?)

    Now out and got a Army pension.

    AVC's - how they work . You put in 78 quid. Browns boy puts in 22.

    45 years later you are quids in.

    Only downfall is you can't get the dosh till you are 65.
  5. Try speaking to a reputable INDEPENDENT Financial Adviser.
  6. BiscuitsAB

    BiscuitsAB LE Moderator

    Now thats what I call unqualified advice!
  7. It's also wrong!!

    I have a FSAVC and have chosen to take the pension at age 55.
  8. Don't try and work this stuff out by yourself - it's a minefield and if you get it wrong you can lose out financially whilst you're slowly/quickly going senile. There are also significant differences in the providers of pension schemes.

    One of the Partners in the IFA practice I work in is a pension specialist (what fun!) - :help: PM me if you would like her email and I'm sure she would be fine to have a quick chat with you and try and point you in the right direction.

    Good Luck!!! :crash:
  9. You have been given the best advice, find an independent financial adviser. Listings of IFAs in your area. In your circumstances you could do with finding one who understands forces terms and conditions or is prepared to do the research.

    Personal recommendation usually works best, so ask around. The FSA has some stuff explaining pensions, (but it can be a little simplistic), (Money Made Clear). Having contacted JPAC recently for a client, you are entitled to a statement of your forces pension projections annually and it is much faster if you do this bit yourself. If your IFA tries to get the detail themselves, there are a number of time consuming hoops they have to jump through.

    You will be hard pushed to match your forces penison in civvy street - final salary schemes are all but dead unless you can get into the public sector, (too expensive and too unpredictable), the usually suggested course of action is; get a projection for your forces pension; estimate how much income you need in retirement to achieve the lifestyle you want; estimate how much extra pension fund you need, based on the current annuity rates; then pay in as much as you can to bridge the gap between the forces scheme and the income you want. You will have to make a number of assumptions and there isn't a right answer - regular reviews of your assumptions are more valuble than wasting time trying to get it "right" the first time.

    There has been a radical shake-up in the rules relating to how much you can pay into your pension(s) - for most wage slaves, the limits are out of sight: annual limit, your salary or £215,000, whichever is the lesser; lifetime limit, £1.5Million, so you can pay in a LOT of money. As a wild generalisation, most people pay in too little, too late.
  10. Jeremy's advice is spot on - just make sure the IFA you speak with is preferably a pension specialist. :!:

  11. Thanks for all the advice people have given me so far.

    Billywhizz, I may take you up on your offer andPM you as soon as I get the stuff through from SW.

    Thanks again,

  12. This is what I did when I finished after 22 in 1992, and I retired completely in 2004 at age 56 :

    If you can afford to, commutate the pension and invest the cash, that's what I did, keep back £ X amount to cover emergencies, get advise from three or four good Independent Financial Adviser's and invest the balance.

    As soon as you can after leaving the Army start paying into a private pension scheme, BUT stipulate that the pension must be able to start paying out on your 55th birthday, that gives you 3 options.

    1. Retire at 55 and take the private pension "like me".
    2. Keep on working past 55, but take the private pension as well as the salary.
    3. Keep on working past 55, but keep on paying into the private pension scheme, this gives you a bigger pension pot when you do decide to retire.

    Don't get talked into a private pension that only starts to pay out when you get to 65, you might not live that long.

    I should mention I have a military pension and a private pension.

  13. Mick's experience has obviosuly worked for him, but I would have to reiterate for anyone reading this that you must get professional qualified advice up front. :D

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