Pensions and AVC's for aircrew
Join Date: Dec 2004
Location: UK
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"You need to see an IFA because it is illegal to provide any Financial advice unless you are qualified. The post from the old fat one is illegal advice"
That's not quite right, its only illegal to act as a financial advisor without being qualified. You can give as much advice as you want as a "mate" just not as an IFA.
Hope that clears things up
HG
That's not quite right, its only illegal to act as a financial advisor without being qualified. You can give as much advice as you want as a "mate" just not as an IFA.
Hope that clears things up
HG
Join Date: Apr 2007
Location: UK
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I started to pay into an FSAVC in 91, expecting to stay until 55. I left in 07 and am still paying into it. Not got round to following up properly yet. Any opinion on how it stands after you leave?
I don't own this space under my name. I should have leased it while I still could
I took out an FSAVC about 15 years ago. I ran it for a couple of years and then decided I had better things to do with my money, or rather Miss PN1 did as she took innumerable driving tests before taking my car to uni.
I stopped contributing but the small pot then doubled in size.
I have just converted. I noticed that fund rose quite hansomely last year to a point it had reached in Oct 07.
The reason I opted for a pension today is that advice in the papers pointed out that hanging on until I was 70 or 75 for a higher payout would have a break even point some 15 years hence when I was well in to my 80s.
The sum involved is miniscule but never the less is 10% of what I put in and 6% pa of the fund value. That of course will be taxed bringing the yield down to 4%. It is fairly adjacent to my share portfolio income so on balance it is 50-50.
Referring back to the reason I stopped contributing - you should not be seduced by the 40% tax relief and borrow to save.
I stopped contributing but the small pot then doubled in size.
I have just converted. I noticed that fund rose quite hansomely last year to a point it had reached in Oct 07.
The reason I opted for a pension today is that advice in the papers pointed out that hanging on until I was 70 or 75 for a higher payout would have a break even point some 15 years hence when I was well in to my 80s.
The sum involved is miniscule but never the less is 10% of what I put in and 6% pa of the fund value. That of course will be taxed bringing the yield down to 4%. It is fairly adjacent to my share portfolio income so on balance it is 50-50.
Referring back to the reason I stopped contributing - you should not be seduced by the 40% tax relief and borrow to save.
I don't own this space under my name. I should have leased it while I still could
VR, if you become non-resident in UK, but then you pay taxes in Spain or wherever. The whole point is it it tax-free as it goes in hence you pay taxes when it comes out.
As you tax input rate is usually 40% but your tax at output is 30% then you win.
As you tax input rate is usually 40% but your tax at output is 30% then you win.
Join Date: Jul 2007
Location: Germany
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At what age can I grab it? for example, If I paid AVCs from 30 to 38 tax free, moved to dubai (working) on retirement from the mob at 38,could I grab it then tax free or would I have to wait till I was 55?
Join Date: Nov 2010
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Happy for you chaps with pensions
I am pleased to see you serving chaps discussing pensions and AVC's.Is there not a department in HM Forces where you can get advise.
Spare a thought for lots of guys (like myself) who did up to 21 years 364days, retired before April 1975 and got not a penny.
Check out Equality for Veterans Association and lend your support. A case is going before the courts next year if not sooner.Good luck and safe flying
Spare a thought for lots of guys (like myself) who did up to 21 years 364days, retired before April 1975 and got not a penny.
Check out Equality for Veterans Association and lend your support. A case is going before the courts next year if not sooner.Good luck and safe flying
I don't own this space under my name. I should have leased it while I still could
VR, not sure but remember an AVC is a gamble.
You gamble for a long and happy retirement of many years. They gamble you will turn your toes up sooner and they pocket the whole balance.
The pension for a 30 year old will be very small compared with the pension fron the same pot for a 70 year old. And of course remember, that pension is taxed.
You gamble for a long and happy retirement of many years. They gamble you will turn your toes up sooner and they pocket the whole balance.
The pension for a 30 year old will be very small compared with the pension fron the same pot for a 70 year old. And of course remember, that pension is taxed.
Join Date: Jul 2007
Location: @exRAF_Al
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Vin,
If you transferred it to a Qualifying Recognised Overseas Pension Scheme (QROPS), although you are still not able to draw on it until 55 years old, you are presented with certain advantages. For instance, you do have the potential (under certain circumstances) to access the entire benefits tax free. More importantly, if cash flow is an issue, the scheme will have agreed with HMRC to report any payments made from the scheme only for the first 5 "complete and consecutive UK tax years" of the member’s overseas residency. Therafter, things such as GAD rate annual payments to the member (ie; you) tend to drop off the radar..
Bear in mind that following the latest emergency budget and the announcements on the change from RPI to CPI, some final salary pension schemes have temporarily suspended guaranteed transfer valuations required for pension transfer value analysis for transfers to other UK pension schemes and QROPS. If yours is a Free Standing AVC linked to AFPS, then you need to check if the moratorium (still) applies. Here is a list of providers who might be of help. Although Do Buy isn't specifically mentioned, you can still have a third nation involved.
http://www.hmrc.gov.uk/pensionschemes/qrops.pdf
Since earlier this year, there are also Qualifying Non UK Pension Schemes (QNUPS) which allow ex-pats more freedom if they wish to return home after a period overseas, or if they have already gone into a QROPS. SPVA and HMRC can throw their teddies out of the cot though, if the QROPS is clearly a dodge. Be careful.. the Isle of Man seems intent this week, on bursting onto HMRCs radar screens.
Isle of Man makes Qrops land grab with pension rules - New Model Adviser Edition - Citywire
International Adviser :: Army bans transfers to Wenns QROPS
PN,
I agree that the immediate 40% tax uplift should not be the sole reason to invest income via the pension wrapper. But for the right client and in the right circumstances, it makes the decision the best one almost by default.
If you transferred it to a Qualifying Recognised Overseas Pension Scheme (QROPS), although you are still not able to draw on it until 55 years old, you are presented with certain advantages. For instance, you do have the potential (under certain circumstances) to access the entire benefits tax free. More importantly, if cash flow is an issue, the scheme will have agreed with HMRC to report any payments made from the scheme only for the first 5 "complete and consecutive UK tax years" of the member’s overseas residency. Therafter, things such as GAD rate annual payments to the member (ie; you) tend to drop off the radar..
Bear in mind that following the latest emergency budget and the announcements on the change from RPI to CPI, some final salary pension schemes have temporarily suspended guaranteed transfer valuations required for pension transfer value analysis for transfers to other UK pension schemes and QROPS. If yours is a Free Standing AVC linked to AFPS, then you need to check if the moratorium (still) applies. Here is a list of providers who might be of help. Although Do Buy isn't specifically mentioned, you can still have a third nation involved.
http://www.hmrc.gov.uk/pensionschemes/qrops.pdf
Since earlier this year, there are also Qualifying Non UK Pension Schemes (QNUPS) which allow ex-pats more freedom if they wish to return home after a period overseas, or if they have already gone into a QROPS. SPVA and HMRC can throw their teddies out of the cot though, if the QROPS is clearly a dodge. Be careful.. the Isle of Man seems intent this week, on bursting onto HMRCs radar screens.
Isle of Man makes Qrops land grab with pension rules - New Model Adviser Edition - Citywire
International Adviser :: Army bans transfers to Wenns QROPS
PN,
I agree that the immediate 40% tax uplift should not be the sole reason to invest income via the pension wrapper. But for the right client and in the right circumstances, it makes the decision the best one almost by default.
