Quick calculation

Silvertabby

Your pension is a guaranteed £16,500 pa, index linked to inflation. To get an equivalent pension with a lump sum, you would need to purchase an index linked annuity.

Early in the thread, zagfiles provided the cost of such an annuity as £825,000, so that is the answer to your question.
Originally posted by coyrls

murphydog999 wrote: »

Thank you, are are you saying this from a position of knowledge and experience? If so how do you reconcile it will the lower figures? Are they not realistic?

Are you asking these quesions for a reason? If you need your LTA (lifetime allowance) figure for another pension scheme then you'll have to ask Armed Forces pensions for it as the calculations in our cases aren't straightforward.

If it's out of curiosity, then the estimated amount of the sum needed to buy an annuity (£825K) will be as good as it gets.

Otherwise, rule of thumb valuation for a final salary scheme already in payment is 25 x the annual pension (£412,500).

Either way, transferring out to a private/money purchase money scheme is NOT an option, so there's really no point in juggling 'what if' figures.
Originally posted by Silvertabby

Thank you for pointing this out, I've never mentioned transferring as I know it's not an option, and isn't why I am asking.

I know, but other responders have mentioned it.

Alibert

Murphydog the reason you are getting so many answers is that everyone is taking a guess about what you really want to know .. and answering accordingly

If you give them some background about why you are asking , and what you really want to know , you will get a better answer

Paul_Herring

Alibert wrote: »

If you give them some background about why you are asking , and what you really want to know , you will get a better answer

We've tried. He's been, at best, equivocal about any answers he has actually given.

coyrls

murphydog999 wrote: »

Thank you, are are you saying this from a position of knowledge and experience? If so how do you reconcile it will the lower figures? Are they not realistic?

The lower figures were for annuities that are not index linked, so not equivalent to your pension or for drawdown, which doesn't give you a guaranteed income, so again not equivalent to your pension.

The actual figure came from zagfiles, who, based on previous posts of his, is more knowledgeable than me (at least in this area!).

Note, this is the answer to your question as asked, not necessarily the answer to your "real" question, which you have not disclosed.

Silvertabby

Murphydog - in the absence of your reason for wanting this information, I'm going to take a wild guess that you've been asked to produce a pension valuation for divorce purposes.

If I'm right, then the only people who can answer your question is Armed Forces pensions. It's a very complicated calculation, involving a lot more than just your annual pension.

murphydog999

Paul_Herring wrote: »

We've tried. He's been, at best, equivocal about any answers he has actually given.

I am still here you know!

Apologies but as I said I would rather not go into detail. I appreciate everyone's input given my probably over simplistic request.

redux

murphydog999 wrote: »

I am still here you know!

Apologies but as I said I would rather not go into detail. I appreciate everyone's input given my probably over simplistic request.

Well, people are setting out the starting assumptions behind the different figures they are giving, annuity or not, index linked, etc, but you're still asking someone how do they know that is the right answer, as if there should be only one and they've asserted this is a better guess than the others - which they have not said.

Some sets of circumstances can not tolerate any uncertainty, for instance, away from this subject, funding full time care in medical negligence settlements, which have run into millions as interest rates have dropped.

If that is nearest to what you are thinking about, you'll have to use a higher figure; otherwise you might choose a lower one. Look at the different numbers given above, and the various conditions around them, and decide for yourself which seem like the best fit for the circumstances.

Alibert

Your real name is Murphy , isn't it ?
D'oh

murphydog999

What is it you are insinuating Alibert?