RAF pension

boogiesherbs

Hiya soon to leave RAF after 7 years to begin new work at BAE systems,

Was planning to transfer my RAF pension into my BAE systems Pension is this a good move?

Ta

Andy_L

Probably not.

If the BAE scheme is a final salary pension then it depends how much the RAF will give you as a transfer value (I'm not sure if you can actually transfer out a preserved pension) and how much that will buy in the BAE scheme.

If the BAE scheme isn't a final salary pension then the answer is almost certinaly not as you're be hard pushed to match the security & index linking of the mill pension

dzug

You can (normally) transfer a preserved pension. Mrs dzug did it some 20 years after the pension was preserved.

But Andy's advice is sound.

boogiesherbs

it says in leaflet that i can transfer to another pension, what would be a good deal of BAE systems then?

hollie.weimeraner

Hi, the transfer values of the RAF (Non Contributory) scheme are generally pretty good. I transferred 12 years RAF service to the Police Pension fund 17 years ago and this bought me 10 years Police Pension. (Sorry I don't have any monetary values). The value you have will obviously depend on your trade/salary whilst in the RAF but you should be able to get a transfer valuation before you actually sign it over. (BTW I was an airframe engines technician).

boogiesherbs

oh right thanks for the info hollie + andy will investigate!

moonrakerz

I would suggest you don't even consider moving a Government backed pension into a private money-purchase scheme ! Keep it ! A Gov pension is fixed, then index linked.
If you get a cash transfer sum to a private scheme you are then dependent on the Stock Market for any growth.

It might be worth transferring your time into another Gov scheme - but would get proper qualified financial advice.

Andy_L

I've done some digging and it looks like the BAE scheme is a final salary scheme.

boogiesherbs

is that good or bad Andy L

Andy_L

Generally good. read this for the differences
http://www.fool.co.uk/school/2005/sch051207.htm

(they refer to final salary using the more general term Defined Benefit).

The armed forces scheme you have is a Defined Benefit scheme

boogiesherbs

thanx andy again so in your view i should find out how much i get in transfer if its a resonable amount transfer??