Beagle,
I think you were badly advised there. In simple terms you turned down £45K cash in hand tax free for an extra £3k per year (taxed).
If you had the money you could have paid yourself out of the 45K whilst it earned some interest. If, God forbid, you were to keel over next week your loved ones would also have the benefit of that money.
At 0% interest, the RAF only gains if you live longer than 45/3 x 1.33 (tax element) ie about 20 years after retirement. And they make the interest on the money you didn't take.
To all who still have rights under the Life commutation scheme think carefully before turning it down.
After all, it was stopped to save the government money!!
Last edited by Stan Bydike; 30th Oct 2003 at 13:55.