Originally Posted by
Lima Juliet
You’re missing the point
VinRouge . It is not about what the pension will pay you, it is what the pension will COST YOU. So if the private pension market performance is poor (which it is), then the valuation of what the AFPS would cost the Service person will increase. It’s not about what it pays you, it’s about what it would cost you.
It depends upon risk appetite and what you do with your pot. SIPP, balance of
risk etc. I know most who have hit but not exceeded annual limits and with the flexibility of their own provision and taking advice, have done far, far better than the “average”, which is a pretty poor use of your money. Again, HMG increasingly seem to be able to set whatever contribution rate they like (with advice from GAD), it then becomes a pseudo income stream when the Personal Allowance is accounted for.
It’s a bit like comparing the NAFFI Spar price for Jaffa cakes compared to what you can get them for in Tesco. Except you don’t get a choice.