Help with lump Sum

Smudger78

Newbie
Due to leave the RN in 12 months after doing 22years and have gone onto pension calculator, but struggling as am on 75&15 pension. Have asked a few people but it's not clear..

Can someone point me in the right direction as if I commute it all what do I walk away with roughly ?

Below is an example of the PC that I have had.. figures not exact.

Pension EDP EXIT 10.500
LUMP SUM EXIT 34.500
Deffered pension 12.200

Commutation AFPS 75/15

Lump sum payable at exit 14,500
Lump sum payable at SPA 12,500

Reduced pension 8k

from my understanding I would get 70k is that correct ??
 

BigD1980

Lantern Swinger
I can tell you as fact you will not be getting 70k if you have only done 22. Unless you're a Pig of course Oink oink
 

BigD1980

Lantern Swinger
Due to leave the RN in 12 months after doing 22years and have gone onto pension calculator, but struggling as am on 75&15 pension. Have asked a few people but it's not clear..

Can someone point me in the right direction as if I commute it all what do I walk away with roughly ?

Below is an example of the PC that I have had.. figures not exact.

Pension EDP EXIT 10.500
LUMP SUM EXIT 34.500
Deffered pension 12.200

Commutation AFPS 75/15

Lump sum payable at exit 14,500
Lump sum payable at SPA 12,500

Reduced pension 8k

from my understanding I would get 70k is that correct ??
I don't know what rank you are but for an example a Top of the increment range WO1 with 22 years service which is extemely unlikely to ever happen would only receive 65k with full commutation and a reduced pension of 10.4k.
 

BigD1980

Lantern Swinger
Looking at the figures im assumming you're a PO if you fully commute you would be looking at 48K with reduced pension of just over 8k until 55 but im no expert and i also may be completetly wrong Ha
 

Smudger78

Newbie
Thanks for the help it is written badly as on the 75 pension and 15 pension. When reading the calculator it does look like a bigger lump sum, that's why I'm asking as has anyone left with 75-15 pension ??
 

vauxhall

Lantern Swinger
Due to leave the RN in 12 months after doing 22years and have gone onto pension calculator, but struggling as am on 75&15 pension. Have asked a few people but it's not clear..

Can someone point me in the right direction as if I commute it all what do I walk away with roughly ?

Below is an example of the PC that I have had.. figures not exact.

Pension EDP EXIT 10.500
LUMP SUM EXIT 34.500
Deffered pension 12.200

Commutation AFPS 75/15

Lump sum payable at exit 14,500
Lump sum payable at SPA 12,500

Reduced pension 8k

from my understanding I would get 70k is that correct ??
Right, you need to separate out what they are telling you.

When you leave you will be getting a pension lump s
Due to leave the RN in 12 months after doing 22years and have gone onto pension calculator, but struggling as am on 75&15 pension. Have asked a few people but it's not clear..

Can someone point me in the right direction as if I commute it all what do I walk away with roughly ?

Below is an example of the PC that I have had.. figures not exact.

Pension EDP EXIT 10.500
LUMP SUM EXIT 34.500
Deffered pension 12.200

Commutation AFPS 75/15

Lump sum payable at exit 14,500
Lump sum payable at SPA 12,500

Reduced pension 8k

from my understanding I would get 70k is that correct ??

First, have a read of the article on lump sums in this magazine (P6-7 i believe) - https://cloud.3dissue.com/6374/7271/15135/PathfinderMay2017/index.html

Vets Uk will have separated out what they are paying.

The AFPS 75 pension lump sum requires no decision from you but their question about commutation does. Do you want to give up some of your pension until age 55 to get a second lump sum? I take it that that is what the £14.500 is. They will have given you a figure to show what your pension will be reduced to until age 55. At age 55 it will be restored to its original level and pick up any CPI rises which have occurred since you left the Service

The next immediate question is 'do you want to keep your EDP lump sum or do you want to give it all back to them for a bigger EDP income until your state pension age?" They will have given you a figure to show you what the taxable increase in your EDP income will be.If you are thinking of doing this, have a chat with a financial adviser - a tax free lump sum is a valuable thing to part with.

The final question is 'at state pension age, do you want to give up some of your deferred AFPS 15 pension to generate a tax free lump sum?" Can't answer that for you, I am afraid and it may be that you think it a bad idea now and a good idea later (or the other way round). Not to worry. You can review your decision - our advice is to do it at least 6 months before you are due to claim your pension - and let Vets UK know. No work will have started on your AFPs 15 entitlement, so no one can complain.

From my reading of your post it looks to me as if you have been told you are getting a lump sum of 34.5K on exit and could have a further 14.5K if you commute. Total 49K. If you give up your EDp lump sum, obviously this figure will go down. You are also being told that you could get another lump sum of 12.5K at state pension age if you want to give up some AFPs 15 pension to generate it.

If you are a member of the Forces Pension Society you can send you statement to the team in Vauxhall and they will explain it all to you. email - [email protected] If you are not a member and you want to know more about us, visit www.forcespensionsociety.org
 

BigD1980

Lantern Swinger
Right, you need to separate out what they are telling you.

When you leave you will be getting a pension lump s



First, have a read of the article on lump sums in this magazine (P6-7 i believe) - https://cloud.3dissue.com/6374/7271/15135/PathfinderMay2017/index.html

Vets Uk will have separated out what they are paying.

The AFPS 75 pension lump sum requires no decision from you but their question about commutation does. Do you want to give up some of your pension until age 55 to get a second lump sum? I take it that that is what the £14.500 is. They will have given you a figure to show what your pension will be reduced to until age 55. At age 55 it will be restored to its original level and pick up any CPI rises which have occurred since you left the Service

The next immediate question is 'do you want to keep your EDP lump sum or do you want to give it all back to them for a bigger EDP income until your state pension age?" They will have given you a figure to show you what the taxable increase in your EDP income will be.If you are thinking of doing this, have a chat with a financial adviser - a tax free lump sum is a valuable thing to part with.

The final question is 'at state pension age, do you want to give up some of your deferred AFPS 15 pension to generate a tax free lump sum?" Can't answer that for you, I am afraid and it may be that you think it a bad idea now and a good idea later (or the other way round). Not to worry. You can review your decision - our advice is to do it at least 6 months before you are due to claim your pension - and let Vets UK know. No work will have started on your AFPs 15 entitlement, so no one can complain.

From my reading of your post it looks to me as if you have been told you are getting a lump sum of 34.5K on exit and could have a further 14.5K if you commute. Total 49K. If you give up your EDp lump sum, obviously this figure will go down. You are also being told that you could get another lump sum of 12.5K at state pension age if you want to give up some AFPs 15 pension to generate it.

If you are a member of the Forces Pension Society you can send you statement to the team in Vauxhall and they will explain it all to you. email - [email protected] If you are not a member and you want to know more about us, visit www.forcespensionsociety.org
What he said but i wasn't far off
 
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