Have just received some interesting info from the Governments latest Green Paper on pensions which will motivate us all packing to go to sandy places. I'm no pensions expert, but the implications for the forces could be massive. Here's some of the highlights:
“the Government intends to set a minimum age at which
tax-privileged pension benefits can be drawn – the minimum benefit age – at 55 in 2010."
“In the new tax rules, the minimum benefit age will apply to all pension schemes which qualify for tax relief, including those special schemes for particular trades where people may retire at a relatively young age. From 2010, people in these schemes
will not be able to draw benefits until age 55, whether or not this is the point at which they stop work in this line of business."
In summary then, it appears to me that anyone retiring after 2010, who has not reached their 55th birthday will not recieve any pension until their 65th birthday. Worryingly, the green paper makes no mention of gratuities. If this will apply to the forces then I guess we will all have to "retire" at the first available option point or lose benefits worth tens of thousands of pounds. This is especially galling after MPs voted themselves a 20% increase in pension benefits. A useless MP who gets kicked out after just four years receives about £6500 per year for life. This would require a pension fund of nearly £120000. Naturally, they are not tinkering with their own security. If this does apply to the forces it will completely redefine "retention problem!!!
Round&Round