PPRuNe Forums - View Single Post - Armed Forces pension
View Single Post
Old 25th Feb 2012, 18:29
  #209 (permalink)  
LFFC
 
Join Date: Jun 2005
Location: UK
Posts: 769
Likes: 0
Received 0 Likes on 0 Posts
Quazzi,

Here are a couple of important things that you should remember:

If you've recently been promoted, you won't be credited with the resulting pension increase for another year or two. So, any further immediate reduction in the pension tax-free allowance - like the one announced just over a year ago - might lead to you being presented with an unexpected tax bill in the not too distant future! But never fear - rather than tap you for the money now, they will take it out of your gratuity when you leave.

Also watch out for any further increase in the actuarial factor used to work out the increase in value of your "pension pot" when your defined pension increases. It was increased from 10 to 16 just over a year ago, but the treasury might argue that, as annuity rates have continued to fall over the last year, it should be increased again - and trust me, that would be a bad thing!
LFFC is offline