Help-Pension Advice

ger2000

Folks, first time poster and looking for advice on my pensions.

1. I have a armed forces pension that will be index linked in 5 years time, I am currently drawing £8250 a year, does any one know roughly its worth in five years. I am aware it is in line with CPI.Just looking for a ball park figure?

2.At this time I will be able to draw on my other government pension at 55 years of age. Roughly 7k a year.

What will be the benefits if any in relation to tax and National insurance for my pensions as I am trying to work out my disposable income and what type work I would need to consider to maintain my monthly income. Thanks in advance

bigadaj

Do you mean that your pension will increase by CPI, or that it isn't increasing and so the value is reducing in relation to inflation?

Either way inflation seems to be running at 2-3% so over 5 years that will compound up to a figure of around 10-20%. Of course no one knows what future inflation will be but that's a reasonable guess.

You only pay tax on pension income, so you don't pay NI.

You need to check the conditions of drawing the pensions, as drWing theme early can be costly.

ger2000

Yes sorry my forces pension has been frozen since 2004 and will be index linked in 2019. I was trying to see what roughly the increase will be then in percentage terms to what it is now. Thanks re the NI advice.