Hi Al R,
Thank you for your excellent and informative posts on this site. Whilst I am conscious that you cannot offer advice, I would appreciate your thoughts on my “cunning plan” outlined below:
I am on the Professional Aviator (PA) Spine and AFPS 05, earning around £74K with 5 years to go to retirement at 55.
Scenario 1: If I see it out to 55, my pension on retirement should be around £35K. 12 years later, when I reach 67, this should rise to around £40K when the state pension kicks in. Shortfall between ages 55-67 of around £60K.
Scenario 2: Following the next SDSR, the gov’t turns my ac into beer cans and I am made redundant in ~2017. My initial EDP’s should be around £24K, rising to £25K when I reach 55 and £33K at 65. With the state pension at 67 bumping this up to £38K. Shortfall between ages 53-67 of around £168K!!
I also have ~10K in an FSAVC, contributed prior to joining the PA spine.
How much “headroom” do I have available to contribute to a DC pension during my last 5 years of service? Given the new pension flexibility outlined in the budget, I would plan to draw this money out in annual lumps to partly fill the shortfalls outlined above to top-up my pension income.
Does this sound like a reasonable plan and, if so, what sort of DC pension should I be looking at, a SIP, Stake Holder or resuming the FSAVC? In addition, would it improve my available headroom if I can start the pension before 5 Apr 14?
It may well be that I need to come to you for advice on a formal basis, however it would be helpful to first know if my plan is feasible or a non-starter.
Many thanks for your help,
T2D
PS: If my plan works, I may have to change my PPrune user name!