Commutation of Army Pension - Is it worth it?

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  • jungli_jim
    jungli_jim Posts: 42 Forumite
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    BettiePage wrote: »
    No. He wants to pay less for them. Why? :confused:

    Bettie, perhaps you'ld like to give us the female wisdom of turning down £170K, going to court for more and claiming she needed 5 years spousal because she could not be bothered to get off her !!!! Then again she could not prove to the judge that she was looking for a job, had contemplated work or had even thought about enrolling at college for training.. Perhaps as a male i am also to blame for the fact that she came out with less than i had offered and no spousal.....But then again some women think that they should be kept, are special and deserve for their Ex husbands to be shafted.

    Am i to blame for Ex using her CC as if it was confetti and ending up in substantial debt?

    Am i also to blame for said Ex chosing to buy a £180K house at the peak of the market and then spending £12K on new windows, doors and kitchen? Did i force her to buy, she could have rented.

    Am i to blame for her larger and better equipped neighbours house being on the market for £165K? Am i to blame for the House Price Bubble imploding?

    Quite simply using the gratuity will clear any mortgage and if that means she ends up with £30 a month less so be it. If life is hard for her she should go out and get a job, the Goose that laid the Golden egg has stopped laying..
  • tartanterra
    tartanterra Posts: 819 Forumite
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    BettiePage wrote: »
    Why don't you want to pay for your child/ren? :confused:
    He never said that.

    Besides, this is a thread for Service personnel to discuss how they can best maximise their pension.

    I think you may be confusing it with some socialist/feminist forum.:rolleyes: If you want to spout politics, then I suggest you use the correct forum.
    Nothing is foolproof, as fools are so ingenious! :D
  • andyshepherdson
    andyshepherdson Posts: 1 Newbie
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    can i commute fully a 10 year forces pension and how do i do it
  • Alias_Omega
    Alias_Omega Posts: 7,912 Forumite
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    Welcome to the Forum Andy,

    Im sure someone will be along to answer your question.

    Regards,

    Alias
  • molerat
    molerat Posts: 31,865 Forumite
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    For starters look here http://www.mod.uk/DefenceInternet/AboutDefence/WhatWeDo/Personnel/Pensions/ArmedForcesPensions/AFPS05/ if you are in AFPS05 or here http://www.mod.uk/DefenceInternet/AboutDefence/WhatWeDo/Personnel/Pensions/ArmedForcesPensions/AFPS75/ if in AFPS75.
  • c53204
    c53204 Posts: 27 Forumite
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    I was made redundant in 1993 as part of the 'options for change' - after 20yrs service. I was advised to take full commutation and place it in a high return account. Of course this advice was given by a financial institution who wanted my money. Seemed a good idea, but I was too tempted to spend it an buy a house outright.
    Clive
  • samroo
    samroo Posts: 149 Forumite
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    Can anyone give me a guestimate of what pension my husband will receive when he turns 55 in 10 years time. 24 years service RN, current pension £8,000. All anyone ever says to me is that pension is index linked from age 55 but this means nothing to me. Thanks for your help
    Sam
  • molerat
    molerat Posts: 31,865 Forumite
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    edited 24 December 2009 at 11:55PM
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    The figure depends on the annual RPI pension increase. Is the figure quoted the full pension or the commuted pension ? When did he start receiving the pension ? The figures below assume he has just been discharged and not been receiving the pension for some time.

    The full pension awarded on discharge will be notionally increased each year by the RPI % figure. Using an annual RPI of 2% as a guide the 8K will be worth around £9750 in 10 years time. Once he is 55 he will actually receive the annual increases. Over the past 15 years the RPI figure has been between 1.1 and 5% so predicting is a bit of a guess.
  • samroo
    samroo Posts: 149 Forumite
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    Thanks for the reply. Hopre you had a good christmas and new year. Pension was commuted and husband has been receiving the £8,000 since September 2004. Thanks again.
  • molerat
    molerat Posts: 31,865 Forumite
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    So the figure you need to work on is the full pension and not the £8K. The full pension is probably iro 10K which, using historic rises since 2004 and 2% in future, comes out at around £14.5K.

    Just do as I did. I started a spreadsheet and filled in the rpi figure each year and got a good guide as to where it was going. The pension I finally received was £18 pa short of my figure.
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