Guys, Before you claim your first pension payment, Google 'QROPS' (Qualifying Recognised Overseas Pension Scheme). It is not ideal for every situation but can save (and make) you a fortune. You transfer your MOD pension into an overseas (offshore) pension and it grows tax free (16% last year) and is paid tax free from UK point of view. There may be a tax liability in the country you have retired to - but there may not. For example, we will retire to Malaysia and Malaysia only taxes income that is earned within Malaysia and will therefore allow me to claim my RAF pension (converted to QROPS) tax free.
The other big benefit is that the total value of the fund does not die with you as you never have to purchase an annuity - the fund is yours to bequeath in your will - a huge benefit.
There are some good fund managers in Guernsey. I obviously won't name names on this forum but please PM if you would like more details - I have no financial incentive to recommend any particular company.