Clueless when it come to my pension.

Discussion in 'Finance & Pensions' started by danny, Mar 30, 2014.

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  1. I'm planning on putting my notice in fairly soon and by the time i leave the service I will have done just over 9 years. I had a look at the pension calculator and to be honest was pleasantly surprised at what i will get as I was not expecting much at all really.
    Is there anyway I can get access to the money in the pot to put in to another pension scheme outside. Or is it better to just keep what you have where it is nice and safe.
    I plan on moving to the colonies the day after my service is officially up I don't know if this will make much difference.
    When I leave I will be 30 having worked full time since I was 17 with only 1 week unemployed (which was the week before I joined)
    The first few years of employment I was an apprentice and i'm guessing I did not pay very much tax no idea if I paid national insurance, would this knock years off my state pension as well?

    Sorry if this does not make sense I have tried my best to get my point across.
  2. Oh and I know I can just google but it all seems to be gibberish and Im looking for some simple matelot proof answers.
  3. Hi Danny,

    There are provisions in AFPS 75 and 05 to allow you to transfer your pension out. You ask SPVA for a Cash Equivalent Transfer Value (CETV) and then ask your new scheme what that CETV will buy you in the new scheme. If you like what they are offering, you go ahead. If you don't, nothing is lost by just asking the question.

    It is a good idea to speak to a financial advisor about the figures because it is not just what it buys and, in your case, what will be the cost of transferring the funds abroad, but you need to think about things like when the new pension scheme pays out compared to 60/65 in AFPS 75.

    Do check with your new scheme regarding limits on when a transfer may be made.

    One final point, other readers approaching discharge should seriously consider attending a FAR Briefing. The Forces Pension Society (Forces Pension Society - Fighting for the Forces and their Families) deliver the first part of the brief which covers AFPS (including transfers) and state pensions, tax, national insurance, commutation and death.
  4. Danny, I am most definately NOT a pension expert! But I seem to recall that living in one or other of the colonies (Australia and/or Canada) seriously affects your 'normal' UK pension in some way.

    I'm sure if you Google it you'll find out more or somebody else on here will amplify or explain this point.
    Last edited: Apr 1, 2014
  5. It certainly does. It used to be that in Australia and Canada you had a choice as to whether your pension was taxed in UK or transferred gross out there. Now both countries will tax your pension, like it or not, and it is down to you to claim exemption from UK tax.

    Again, this is covered in the FAR Briefing.
  6. Thanks to both of you. Im still a couple of months away from submitting my notice and the obviously a year away from leaving but I will look in to a FAR briefing at the time.

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