Originally Posted by
VinRouge
Al,
for the unwashed, will this affect those below the higher earnings threshold? What sort of salary do you need to be looking at before the potential/proposed changes become a factor?
Increasingly demonstrating that having your OWN pot, to decide how to divvy up, be that into ISA, investments, or a traditional pensions scheme (which can potentially be SIPPed if necessary at a later stage) is the only way to protect your accrued wealth. As suggested by Easy Street.
We seem to be increasingly mugged off by the government whom don't seem to understand, or dont want to understand, the stampede for the exits that is occurring amongst the highest skilled personnel in our armed forces.
Hi Vin,
How are you doing?
The calculations for a DB scheme aren’t as straightforward as those for a DC scheme (essentially, unless you can carry forward any unused allowance, it’s no more than £40,000 pa) but if you’re a Wing Commander, even gusting as low as Sqn Ldr in a tiny minority of cases, you’ll be wincing. But, it really does depend on personal circumstances.
I take your point about flexibility completely. Political risk is possibly, the biggest single threat of all currently. To savers and to the economy. Uncertainty inhibits commitment, investment and growth. Alas, the government appears set to continue ‘financial repression’ - essentially, keeping interest rates low whilst allowing inflation to nibble away at public debt.
And as as I said just now to OAP, AFPS offers you access to zero flexibility, although membership doesn’t cost anything (as such). I was at Ford UK in Essex earlier this week discussing their company DB scheme, and it was casually remarked that scheme members were going to be allowed the ability to partially transfer out. I have my concerns we’ll see an increase in sub optimal outcomes, and in an unguarded moment, I might let my innermost thoughts question wider motives, but it’s a ballsy move from a big, big scheme. I really hope other follow suit.
I tweeted after the meeting that it was happening, and all hell broke loose - the Ford scheme had no idea of the significance of what they were doing. I broke the story, and the most I got was in the FT with a paltry quote. Good old (Aussi) Jo.
https://www.ft.com/content/f62ea6cc-...0f_XrUikAFQuAI