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    • grimsbyken
    • By grimsbyken 5th Mar 18, 12:45 PM
    • 1Posts
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    grimsbyken
    Preserved army pension
    • #1
    • 5th Mar 18, 12:45 PM
    Preserved army pension 5th Mar 18 at 12:45 PM
    I am soon to receive my small preserved Army Pension. This consists of a lump sum and monthly payments. As I am still working I do not need to use this pension or lump sum and hopefully not until I retire.
    I have a private pension and I am wondering if it would be worthwhile putting my monthly Army pension into my private pension to get a bigger pension pot. I know I cannot put my lump sum into my private pension as there are certain rules. so my question is what should I do with a) The monthly pension and b) the lump sum, to get the best out of them for when I do retire?
Page 1
    • zx81
    • By zx81 5th Mar 18, 12:45 PM
    • 16,832 Posts
    • 17,836 Thanks
    zx81
    • #2
    • 5th Mar 18, 12:45 PM
    • #2
    • 5th Mar 18, 12:45 PM
    Better to post this in the Pensions board.
    • MallyGirl
    • By MallyGirl 5th Mar 18, 1:44 PM
    • 2,685 Posts
    • 7,687 Thanks
    MallyGirl
    • #3
    • 5th Mar 18, 1:44 PM
    • #3
    • 5th Mar 18, 1:44 PM
    I have moved this thread to Pensions as that is a better home for it
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
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    • Brynsam
    • By Brynsam 5th Mar 18, 2:09 PM
    • 946 Posts
    • 617 Thanks
    Brynsam
    • #4
    • 5th Mar 18, 2:09 PM
    • #4
    • 5th Mar 18, 2:09 PM
    Those famous two words: it depends. How old are you? When will you want to draw the cash? How will you want to take it - lump sum or regular payments? Do you need to consider a spouse? How much risk are you prepared to take? What is your tax position now and what is it likely to be in the future? Is inheritance tax going to be a concern? Are you in good health?

    There is no 'correct answer' but you do need to consider what you are trying to achieve - getting the best out of your investments is too broad for anyone to give any really helpful response.
    • xylophone
    • By xylophone 5th Mar 18, 5:04 PM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #5
    • 5th Mar 18, 5:04 PM
    • #5
    • 5th Mar 18, 5:04 PM
    You are still working and have relevant earnings and are under 75?


    Do you mean that you wish to use your monthly army pension to enable you to increase your contributions from your relevant earnings to your current personal pension?


    For example, let's say for example that your sole income is your salary (relevant earnings) of 20,000 a year.

    With relevant earnings of that amount, you could be eligible (subject to the usual rules) to make a payment of up to 16,000 to your personal pension and the provider would claim tax relief of 4000.

    Let's say your army pension is 10,000 a year.

    You might regard this as a replacement for 10,000 of your salary (relevant earnings) enabling you to increase contributions to your personal pension up to the maximum possible from your relevant earnings.


    https://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/1034-relevant-earnings-for-pensions-purposes
    • xylophone
    • By xylophone 5th Mar 18, 5:06 PM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #6
    • 5th Mar 18, 5:06 PM
    • #6
    • 5th Mar 18, 5:06 PM
    Assuming that you are under SPA, have you obtained a state pension statement?

    https://www.gov.uk/check-state-pension
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