RAF Pensions to change

[Mug?]

some extra info

some extra info

It's not just the teachers who are up in arms about this there a lot of other unions supporting this and agreeing not to take any industrial action until the courts have had their say, a court ruling is binding, a change of mind by government will change in the wind.

If the civis in government get the link uprated to RPI then there is no way the CPI rise can be justified for the forces, for whom it has a tougher impact.

I have had a quick look around and this seems to be getting a bit of momentum. Ford are looking at following the government and changing to CPI with the threat of a walkout. Nurses and Firemen too are progressing the legal route. The nurses payout is linked to "an appropriate inflation rate" I know mine said RPI all over the place and that's what I had planned for, so surely we have more legal objection.

Taking the CPL example above I think the difference between the 10k pension in todays money would have been expected to be about 22k in 25 yrs but now is predicted at 15K. Thats 7K a year loss! never mind having to wait till 65 now and maybe 68 soon! It will effect the second lump sum for those on 05 too image 28K in todays money would have been 70K in 25 yrs @3.5% only 48K @2%.

I know there is no way to predict inflation and the rates but as a historical measure they are about 1.5% difference and this is where the money will be coming from that they will be saving.

 

[fatalbert]

Unfortunately, not all of us are able to come and work at your Netherlands company.

And to answer your "difficult" question - the UK Military pension (75 that is) IS a very good pension. That's why they are looking at removing it!!

I think your post is a strong contender for "Most pointless post ever".

Dear ivrytwr3,

I wasn't meaning to ask a difficult question. In comparison to schemes elsewhere, the UK Military Pension doesn't seem that good. I respect your comment about "Most pointless post ever", although in the context of many posts on e-goat I fail to understand whether you ever read the site postings! I spent 24 years in the RAF. I left as a Chief Tech. I've just reached the 55 year old point. My post age 55 RAF pension is just below £10800 per year before tax. For 10 years with my Dutch company I stand to get €28,000 per year approx at today's values before (Dutch tax) at the retirement age of 65.

 

[TG3 TILL I DIE!!!!]

dear ivrytwr3,

i wasn't meaning to ask a difficult question. In comparison to schemes elsewhere, the uk military pension doesn't seem that good. I respect your comment about "most pointless post ever", although in the context of many posts on e-goat i fail to understand whether you ever read the site postings! I spent 24 years in the raf. I left as a chief tech. I've just reached the 55 year old point. My post age 55 raf pension is just below £10800 per year before tax. For 10 years with my dutch company i stand to get €28,000 per year approx at today's values before (dutch tax) at the retirement age of 65.

gis a job!

 

[fatalbert]

PM me. I may be able to oblige. I'm looking for helicopter experienced ex-mil, ILS acquainted personnel and aviation all-rounders.

 

[ivrytwr3]

PM me. I may be able to oblige. I'm looking for helicopter experienced ex-mil, ILS acquainted personnel and aviation all-rounders.

Compared to your current pension, then no, yours is better than the military one. BUT.....

a. you pay into the Netherlands one no doubt

b. not many of us work for the Netherlands company.

Also, the military pension you don't pay into in - as it stands it is a pension for nothing. A lot of my civvy friends either do not have a pension or have to pay hundres of pounds per month to get an equivelant military pension.

How can that be a 'bad' pension Chief?

 

[busby1971]

Compared to your current pension, then no, yours is better than the military one. BUT.....

a. you pay into the Netherlands one no doubt

b. not many of us work for the Netherlands company.

Also, the military pension you don't pay into in - as it stands it is a pension for nothing. A lot of my civvy friends either do not have a pension or have to pay hundres of pounds per month to get an equivelant military pension.

How can that be a 'bad' pension Chief?

If you didn't get a 'free' pension you'd get paid more, I still think it's a good pension like most people an index linked (although to the wrong index at the moment) final salary pension isn't to be sniffed at.

FB Just a presumption here but your average salary throughout your time with cloggies has been considerably higher than it was during your time in the RAF?

 

[Assimilation_humiliation]

If you didn't get a 'free' pension you'd get paid more, I still think it's a good pension like most people an index linked (although to the wrong index at the moment) final salary pension isn't to be sniffed at.

FB Just a presumption here but your average salary throughout your time with cloggies has been considerably higher than it was during your time in the RAF?

Looks like it will no longer be a final salary pension though but more like an average salary over your caeer pension!!

 

[justintime129]

As an aside, someone wrote to one of today's papers saying she's started work for the nhs and will be on poor wages and will have trouble paying into the nhs pension scheme. The financial advisor said try and stay in, the pension is one of the best around, a comparable private one would cost a fortune plus if you dont pay in you'd pay more national insurance so youre not that better off. I'd say the RAF pension is on a par with the nhs one. So it's not that a bad pension, in fact is an excellent one


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[fatalbert]

As an aside, someone wrote to one of today's papers saying she's started work for the nhs and will be on poor wages and will have trouble paying into the nhs pension scheme. The financial advisor said try and stay in, the pension is one of the best around, a comparable private one would cost a fortune plus if you dont pay in you'd pay more national insurance so youre not that better off. I'd say the RAF pension is on a par with the nhs one. So it's not that a bad pension, in fact is an excellent one


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I stepped away from responding on this string, as ivrytwr3 seemed to take exception to any pixel I contributed!

As a supposely 'non contributory' pension, the UK Armed Forces Pension is probably the best you will get. If the pension is viewed as contributory (your pay abated to provide for pension fund payments), and I allude to many Pay Review Board statements over the years, then I'm not totally convinced, but I respect the views of the other posters.

 

[Soon To Leave]

The RAF pension is a good one, but to gain most you should join at 18 and leave at 40 after 22 years service on the old scheme. Beyond that point the pension becomes less attractive, but you have the benefit of still earning a decent salary beyond that point. FatAlbert quoted some figures at age 65 but from an acturarian point of view, £10000 from age 40 indexed from age 50 is worth more than €28000 from age 65 as they work on the premise a proportion of people won't live that long. My personal advice is that anyone working beyond 22 years should make provision for their future by investing in a private pension or SIPP to give the option of retiring at age 55 or earlier and leaving the rat race altogether.