Pension additional contributions

[AlrightDave]

Evening all,

I'm looking at some options on whether it's now even possible to increase my pension. Having carried some fag packet calcs the change from AFPS 75 to 15 has cost ~ 100k on the assumption I live to 80. Obviously no-one can assume future accruals are going to be a certainty and who knows what the state pension is going to look like when I get there, so what are the options to boost my pot given 5 years remaining until exit.

Thanks in advance.

 

[Vauxhall]

Added Pension

Added Pension

Evening all,I'm looking at some options on whether it's now even possible to increase my pension. Having carried some fag packet calcs the change from AFPS 75 to 15 has cost ~ 100k on the assumption I live to 80. Obviously no-one can assume future accruals are going to be a certainty and who knows what the state pension is going to look like when I get there, so what are the options to boost my pot given 5 years remaining until exit.Thanks in advance.

The in-scheme option for AFPS 15 is the purchase of Added Pension. The Pathfinder at link contains an article on Added Pension:

https://cloud.3dissue.com/6374/7271/15135/PathfinderOctober2016/html5/index.html?page=1&noflash

 

[AlrightDave]

The in-scheme option for AFPS 15 is the purchase of Added Pension. The Pathfinder at link contains an article on Added Pension:

https://cloud.3dissue.com/6374/7271/15135/PathfinderOctober2016/html5/index.html?page=1&noflash

Many thanks Vauxhall.

Including the 5 years that I've left to do, I potentially have 25 years worth of future pension accruals for a second bite of the cherry. Can this scheme be continued to be paid into after leaving the Service? It's difficult to work out whether the scheme provides a decent return over a higher risk SIPP, given the fact I have safety net with the IP.

I think a trip to an IFA will on the cards anyway. Any thoughts on the above?

Link to DIN
http://defenceintranet.diif.r.mil.uk/libraries/corporate/DINSpersonnel/2015/2015DIN01-075.pdf

 

[vim_fuego]

Many thanks Vauxhall.

Including the 5 years that I've left to do, I potentially have 25 years worth of future pension accruals for a second bite of the cherry. Can this scheme be continued to be paid into after leaving the Service? It's difficult to work out whether the scheme provides a decent return over a higher risk SIPP, given the fact I have safety net with the IP.

I think a trip to an IFA will on the cards anyway. Any thoughts on the above?

Link to DIN
http://defenceintranet.diif.r.mil.uk/libraries/corporate/DINSpersonnel/2015/2015DIN01-075.pdf

Press the link at the top of this page and consider joining the Forces Pension Society for less than £30! Vauxhall represents them on here and they are brilliant for help and advice as you are just starting to experience.

 

[Vauxhall]

Many thanks Vauxhall.

Including the 5 years that I've left to do, I potentially have 25 years worth of future pension accruals for a second bite of the cherry. Can this scheme be continued to be paid into after leaving the Service? It's difficult to work out whether the scheme provides a decent return over a higher risk SIPP, given the fact I have safety net with the IP.

I think a trip to an IFA will on the cards anyway. Any thoughts on the above?

Link to DIN
http://defenceintranet.diif.r.mil.uk/libraries/corporate/DINSpersonnel/2015/2015DIN01-075.pdf

You can only buy Added Pension whilst you are serving. As for the merit of Added Pension over other products, you are right, that is the domain of an IFA - I wonder if BiscuitsAB is online as he knows all about this sort of thing. You can definitely find him on ARRSE.

If you are a Forces Pension Society member and want to know more about Added Pension in your particular case, contact the team at pensionenquiries@forpen.co.uk

 

[unruly1986]

Has anyone gone ahead with buying 'Added Pension'?

Ive had my quote back and £100 a month (is this pre tax?) for 12 months gets me added pension of £114.94. So I'd have to live for around 11 years to make the money back.

What isn't clear is if/how this affects the EDP.

Any goaters in the know?

 

[Vauxhall]

Your EDP lump sum is 2.25 x pension and your EDP income is at least 34% of your pension - and that is based on the pension including what you have purchased. Thus your 11 yr recoup period shrinks!

If you are an FPS member contact our staff to get facts and figures in your circumstances = pensionenquiries@forpen.co.uk

 

[unruly1986]

Just for other Goaters info:

Now paying £100/month in additional pension contributions for the next year. I will be getting tax relief on this, so it works out at £80/month overall. I'll end up with £114.94/year extra in my pension which will increase by CPI.

Might be worth considering for others on here.

 

[Stevienics]

That means you break even after 8.5 years, or so?

 

[unruly1986]

That means you break even after 8.5 years, or so?

Yes at the most. With the increase to CPI and the effect on EDP/Lump Sum as detailed by the AFPS, could be a few years less.

 

[E E E E E E E E AR]

Can I ask how you did the calculations and if you can do so via the pension calculator?

5 years left to push and I'm a position to add £100 a month (maybe more) for the rest of that time, so very interested in this.

 

[Vauxhall]

You can't do it yourself as there are all sorts of considerations which get built in to the factors. See article at this address:

https://cloud.3dissue.com/6374/7271/15135/PathfinderOctober2016/index.html