Where's the catch?
My situation is I leave aged 38 at my AFPS 75 IPP, with 129 days on AFPS 15, following 16 years service. If I make a single £6500 Added Pension in tax year 15/16, the most you can contribute to the pension, according to the pensions calculator my numbers are:
If I don't take commutation, the pension jumps £7k per annum at SPA.
AFPS 15 commutation lump sum, payable at SPA: £1488 jumps to £29 345
AFPS 15 commutation pension at SPA: £223 jumps to £4401.
(I leave out the AFPS 75 commutation as that doesn't change with the Added Pension.)
As downsizer says, I cannot see the downside of making this investment as long as I see a few years after 70. Could someone also clarify what would happen with my pension for my wife having done this if I were to die before SPA?
Edited: not an AVC, it's Added Pension and you can only invest £6500 (currently unless HMT increase the allowance) total extra into the pension.
Last edited by Guest_22; 15th Apr 2015 at 08:25.