can anyone explain what this means from the army pension website?
Lump sum - If the member was single a tax-free lump sum will be paid to their estate
A tax-free lump sum which amounts to one years salary or the terminal grant that would have been payable on non-attributable invaliding, whichever is the greater
Death before retirement (member with preserved benefits)
If the member dies after leaving service, but before uplifting their preserved benefits, the widow(er) may be paid a gratuity equal to the preserved terminal grant which amounts to a tax-free lump sum of 3 times the annual pension awarded, in addition to the preserved pension
This refers to the death benefits under the scheme and what is paid. The amount of death benefits depend whether you are still in service or not, or are drawing your pension or not. The website is not the clearest, however before retirement, if you are married your spouse will receive a lump sum equal to one year's salary tax free plus a pension for life. If not married it will just be the lump sum.
There is a phone number on the website you should call to double check as the wording isn't very clear.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find an IFA please go to http://www.unbiased.co.uk
Danny Cox, Certified Financial Planner CM, Hargreaves Lansdown, www.H-L.co.uk
