UK Armed Forces annual pay award
Pensions.......
After some advice on the subject above. As pensions are the most favourably taxed savings is it worth making extra voluntary contributions to the forces pension rather than saving using unit trusts/ISA's/etc??
Also can someone who has already left after 8 years make VC's to the forces pension??
All advice greatly received
After some advice on the subject above. As pensions are the most favourably taxed savings is it worth making extra voluntary contributions to the forces pension rather than saving using unit trusts/ISA's/etc??
Also can someone who has already left after 8 years make VC's to the forces pension??
All advice greatly received
Join Date: Jan 2003
Location: England
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Grimweasel
The answer to your first question is MAYBE. You need to take independent professional financial advice, since the answer will depend on a balance between FSAVC performance, Annnuity Rates, possible future changes in pensions legislation and a whole host of other things.
The answer to the second question is ALMOST CERTAINLY NOT (even if the 8 years were served on a pensionable engagement). Even current members of the AFPS cannot make AVCs to buy extra years between actual retirement and age 55, where retirement is expected to occur before the age of 55. The relevent In-Scheme AVC is only available to buy-in previous years of lost Reckonable Service, either due to joining after the starting age for Reckonable Service, or to having left and re-joined where the intervening years are not elligible for benefits from another occupational pension scheme. My reference document is a little dated, but I have no reason to believe the position has changed. For clarification, you may wish to contact your relevant service pensions office.
Not much help, I fear, but sent with regards.
The answer to your first question is MAYBE. You need to take independent professional financial advice, since the answer will depend on a balance between FSAVC performance, Annnuity Rates, possible future changes in pensions legislation and a whole host of other things.
The answer to the second question is ALMOST CERTAINLY NOT (even if the 8 years were served on a pensionable engagement). Even current members of the AFPS cannot make AVCs to buy extra years between actual retirement and age 55, where retirement is expected to occur before the age of 55. The relevent In-Scheme AVC is only available to buy-in previous years of lost Reckonable Service, either due to joining after the starting age for Reckonable Service, or to having left and re-joined where the intervening years are not elligible for benefits from another occupational pension scheme. My reference document is a little dated, but I have no reason to believe the position has changed. For clarification, you may wish to contact your relevant service pensions office.
Not much help, I fear, but sent with regards.
