Armed forces Pension Transfer Scheme - Caledonian

bettyswallocks

Hi,


I left the Army after 15 and a half years which makes me eligible for a small pension when I reach 60 years of age.
I've recently been talking to a consultant from a newish company, called Caledonian. The consultant tells me that Caledonian are able to take my pension and invest it into various different places that will enable me to reap greater rewards from the age of 55, including a 25% tax free lump sum.
The consultant told us that Caledonian are the only company currently offering this service and also the only company with all the necessary measures in place to do so.
The consultant also told me that if I should go across to Caledonian with my pension, I could be looking at a three fold increase in my future entitlement. I'm not going into this completely blind, I do understand that investments can go up as well as down, but the consultant told us that up to 90% of the pension is protected, should Caledonian go under. The consultant did also say that once transferred across, at a cost to myself, my pension could be transferred to any other reputable Pension company, should I not be happy with the service provided by them.
I'd like to know if this all sounds genuine to you, if you've heard anything good or bad about Caledonian our if there is something similar that I could look at doing, as the current legislation governing civil service pensions appears to be due for a change in April 2015, meaning that this will no longer be possible from then. Thanks in advance,

System

Hi

If you left it where it is (try asking the pension admin people) would you better off?

Probably, in that it is protected.

There is quite a lot of info here...

https://www.gov.uk/government/publications/armed-forces-and-reserve-forces-pension-schemes-guidance-booklets

and it covers quite a lot of ground and I don't know which to point you at.

You can transfer it out, but the claim(s) that Caledonian make I find unrealistic, even expensive for you.


So hang fire.
No doubt others will have more/better advice concerning this.

macca1974

just had a brief look at the website mentioned and they are unregulated and can't give pension advice in the UK (and offer to refer you to a regulated company). So.....you have an unregulated company making fantastic promises about what they will do with your final salary pension scheme.

If you want to see whether it would be a good idea to transfer your army pension, I would suggest contacting a local authorised and suitably qualified IFA (via unbiased.com if you don't know any) and paying them a fee to tell you whether it is a good idea or not.

I suspect that the answer is going to be no, but at least you will know it is impartial and regulated.

Unless this is Spam of course.

atush

THis is an unregulated company trying to get hold of your guaranteed, index linked pension.

Don't do it. At best you will be worse off come retirement, at worst they will scamper off into the sunset with your money which you will never see again.

So leave it where it is, to draw at your scheme age- whatever that is. I assume you are working elsewhere now, do you have a current pension? If not, join your work scheme or open a PP and start saving if you want to retire at 55-67 before SPA. A newer DC pension will be able to be claimed at age 55 if you choose- if this is a good idea or not will depend on your circumstances at that time.

This thread and many others here show what happens with such schemes

http://forums.moneysavingexpert.com/showthread.php?t=4935321

kangoora

atush wrote: »

THis is an unregulated company trying to get hold of your guaranteed, index linked pension.

Don't do it. At best you will be worse off come retirement, at worst they will scamper off into the sunset with your money which you will never see again.

So leave it where it is, to draw at your scheme age- whatever that is. I assume you are working elsewhere now, do you have a current pension? If not, join your work scheme or open a PP and start saving if you want to retire at 55-67 before SPA. A newer DC pension will be able to be claimed at age 55 if you choose- if this is a good idea or not will depend on your circumstances at that time.

This thread and many others here show what happens with such schemes

http://forums.moneysavingexpert.com/showthread.php?t=4935321

As above, military pensions are guaranteed and index linked.

I've got 9 years pension due to me at age 60 and wouldn't dream of transferring it out to any other pension fund/scheme. Quite probably only a scam company would even try to take a government backed, index linked pension and move it into a DC pension fund.

Next time the consultant contacts you just hang up on them, no need to be polite - personally I favour the referee's whistle by the phone approach

PeacefulWaters

I could be looking at a three fold increase in my future entitlement

It's a claim well beyond the limits of plausible.

If it sounds too good to be true, it is too good to be true.

You served your country. You deserve better than a nonsense sales pitch. Walk away.

greenglide

I left the Army after 15 and a half years which makes me eligible for a small pension when I reach 60 years of age.

15 and a half service in the military generally gets more than a "small" pension, unless you are applying different standards.

Do you know how much it will be currently? Don't rely on what the salesman says, check with the MOD pensions people. You may be surprised.

kangoora

greenglide wrote: »

15 and a half service in the military generally gets more than a "small" pension, unless you are applying different standards.

Do you know how much it will be currently? Don't rely on what the salesman says, check with the MOD pensions people. You may be surprised.

To give you an idea, I finished 9 years in 1989 leaving as a Corporal on about £13k/year at the time.

I got a recent statement and it is now valued at £3.5k p.a. with 8 years to go before I can claim it. I've calculated it out at circa £4k p.a. (£350-ish a month) in 8 years time assuming 2% per year increase. Plus a lump sum of 3 x annual payments.

greenglide

I got a recent statement and it is now valued at £3.5k p.a. with 8 years to go before I can claim it. I've calculated it out at circa £4k p.a. (£350-ish a month) in 8 years time assuming 2% per year increase.

So better than a poke in the eye with a sharp stick then