Commutation of Army Pension - Is it worth it?

jungli_jim wrote: »

I'll be taking full commutation. Complete 22 Jan 09 but signed on for extra 5, might get further 5 to 2019.

Full commutaion will give me a lump sum of cicra 55K with immediate pension of circa £800 PCM ( after tax). Without commutaion pension is circa £960. As i will be paying child support for the next 10 & 13 years, commutation will save me (CSA2) 20% of £160 i.e £32 a month for the next 10 years.
Commutaion figure should clear mortgage, so taking the extra £17K is worth to me £17K+ interest payments (5%) for 25 years + £3800 saved CSA payments.:p....sure that more than offsest any savings it could accrue at Government based 1%

Why don't you want to pay for your child/ren?

Yes, many of you have hit the nail on the head, I am about to leave the RAF 22 years age 40.
It is a simple decision for me to make, i am retiring in Cyprus and will be depending on every penny of my pension, hence i will not be taking the tax free lump sum. With interest rates at an almost all time low investing the lump sum is a non starter, i will be paying tax in cyprus and the personal allowance in cyprus is upto 18,000 euro's is completely tax free, my pension will be around 10,000K, 11,000 Euro and do not anticipate earning much more from working.
It is definately a personal decision what needs very careful consideration, it may effect you later on and you mat regret your decision.

For me its a simple one i need as much monthly income as i can get through my pension and saving investments i have.

An extra 16,000K for 15 years with a net loss of about double that over the 15 year period is no brainer for me.

Maybe you think anything less then 100% of his wage is not enough, maybe some loans should be taken out too.

There are many factors in break ups, here's one...

Happily married family man, loving husband and father.
Happily paying 100% of all mortgage, bills, cars, utlitities etc etc.

Wife dumps him for another bloke, he is forced to move out, kids stay at home with mum.

Bloke has nothing and no home.

Bloke has to rebuild his life, can't afford another house but needs 2/3 bedrooms to maintain a relationship with the kids.

On his sole wage (coupled to maintenance payments) he cannot afford the required standard of living so ends up living in a squat with nowhere to spend quality time with his kids.

Trying to limit his outgoings means he can continue to provide for his kids, he can buy new clothes, uniforms, holidays, birthday/xmas gifts for his children.


Tarring him with the typically standard, bloke who can't be bothered supporting the life he bought into this World is IMO spiteful and uncalled for (unless you know the facts).

BettiePage wrote: »

You're putting words into my mouth. Don't.

would it not be better for the guy to be able to give his children a place for them to stay when they want to see him and also provide them with a future. as in the sense when he pops his clogs he can leave them a house......or is it better to give them (sorry their mum) an extra 30 odd quid a month..mmmmmh I wonder

Typical woman that thinks short term and not long term

Blimey how suicidal do i feel reading the above.

Glad i don't have a house at the moment to be honest, with the way they are falling through the floor. Gratuity and savings gives me just shy of £90K, house prices are crashing, within 2 years i'll be able to buy. Stick my notice in and go...use the gratuity to clear any outstanding mortgage.
Fancy that,at the worst, unemployed, house, no mortgage and £ 800 a month pension.CSA payment £160 At best house, no mortgage, £800 a month pension and £1500+ a month wages.CSA payments £460.