LTA Calculation Question Please

Good_bad_and_ugly

Without knowing your circumstances, it's impossible to comment. Have a chat with an adviser, it might be worth a few hundred quid for a limited scope report. If there's subsequent fault and attributable to someone with PI cover, at least your 6 is covered.

If you're OF3/4 =, will your new = role give you sufficient clout to allow negotiation of benefits away from pension contributions? If it's close, get that SIPP in some loser funds! Bear in mind too, LTA uprated with inflation from 2017 or so. Worse case scenario, take a view on the Axa Suntrust. Conflicting views abound about its regulatory resilience, but it might allow you scope to attribute growth to a partner/kids etc.

peterg1965

Good_bad_and_ugly wrote: »

Without knowing your circumstances, it's impossible to comment. Have a chat with an adviser, it might be worth a few hundred quid for a limited scope report. If there's subsequent fault and attributable to someone with PI cover, at least your 6 is covered.

If you're OF3/4 =, will your new = role give you sufficient clout to allow negotiation of benefits away from pension contributions? If it's close, get that SIPP in some loser funds! Bear in mind too, LTA uprated with inflation from 2017 or so. Worse case scenario, take a view on the Axa Suntrust. Conflicting views abound about its regulatory resilience, but it might allow you scope to attribute growth to a partner/kids etc.

You are right, I should find an advisor for a limited scope report, but finding someone who is all about on AFPS, where I live, may be a struggle!


My view on my new scheme/employer is almost the opposite to the one you suggest. I want to pile as much money into my SIPP and new DC pension as possible (~£21k in the first year and will increase each year thereafter). Reasons; 1) to avoid losing some of my personal allowance, and 2) because I want to build up funds to £400k as soon as possible (predicted to be about 8-10 years), as that is the point I will fully retire.

Good_bad_and_ugly

Apologies, I misread that, I thought you already had 400k. Agreed.

What colour are you?

peterg1965

Good_bad_and_ugly wrote: »

Apologies, I misread that, I thought you already had 400k. Agreed.

What colour are you?

Dark Blue!

Good_bad_and_ugly

COMSEC PERSEC!!!

Go to RRat or Prune for a steer..?

jamesd

leedsfan757 wrote: »

As the military pension was in payment pre-2006 the factorisation is 25 times, unfortunately. Thanks jamesd for the heads up regarding the timing of BCEs.

So, in a nutshell, I am unlikely to be eligible for IP as the RAF element will be based solely on what is actually in payment on 5th April 2016, not what is due 4 months later?

It's based on accrued benefits, not just what is in payment, the increase is a pending accrued benefit. However I'm not sufficiently confident of just how your situation will be handled and suggest that you seek specific guidance from HMRC or the AFPS to get exact clarification. Logically I'd expect what you're getting now to be 25 times and the increase to be 20 times but logic doesn't apply to tax law.

leedsfan757 wrote: »

Consequently, I may be wise to reduce my contributions to the minimum sooner rather than later?

I did some worked examples of using stock market drops to dodge lifetime allowance charges in the topic LTA Protection. The principles I illustrate there may show you how you can continue to make pension contributions rather than take protection.

leedsfan757

Hi jamesd,

Very many thanks for your posts, I really appreciate your input.

Kind regards.