Pensions Advice

Discussion in 'Finance, Property, Law' started by RABC, Jan 20, 2006.

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  1. RABC
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    RABC LE

    Having seen the pensions calulator, is there any way I can calculate what my pension will be at age 55 , and is there a lump sum to go with it. All the bumf on the pensions site are very hard to wade through. ( I left 10 years ago after 22 years)
  2. BiscuitsAB
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    BiscuitsAB LE Moderator

    The easiest way is to write in and ask for it to be done for you. The scheme administrator has to provide you with that information if you ask for it.
  3. chris951
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    chris951 War Hero

    Try here first Army Pensions - Soliders - Current Rates

    I left after 22 a couple of years ago and keep up to date with this page.

    My understanding is this (and I am open to correction):

    End of 22 years get immediate pension, resettlement grant (3 x salary?) plus option to commutate portion of immediate pension (allowed 10 years to do this??)

    Pension then sits still until age 55.

    Age 55 - get all increments up to that point, hence me looking on the link above. My guess is that our yearly pension will then leap to this amount and be incremented yearly after that. I assume that the rate of pension rise is set by the AFPRB. No lump sum at this point as far as I am aware.

    Hope it helps.
  4. oldbaldy
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    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Not quite right.

    At age 55 the uprate is a at the rate of inflation in September of each year, compounded. In simple terms unless the rate of inflation is highter that the rate of increase in Army Pay (Remembering current pension rates are linked to salary) you will never receive a pension at 55 that a soldier retiring on the same day as your 55th birthday.
    Once 55 you receive an increase in pension in April of each year at the rate of inflation of the previous September.
    Not a simple thing to work out.
  5. chris951
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    chris951 War Hero

    Oldboldy,

    Cheers for the correction.

    Shall now neck a bottle of whiskey, lie upside down and see if I can figure it out that way!! 8O
  6. oldbaldy
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    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    When I reached the ripe old age of 55 I studied all the inflation rates back to when I retired. Did the math, came up with a figure & then , what do you know? I was £800 PA out. Still it was a nice surprise.
    And before anyone asks, yes I did remember to add it my commutation rebate.
  7. RABC
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    RABC LE

    Thanks guys
  8. GP3_Bunny
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    GP3_Bunny War Hero

    Does anybody have an excel spreadsheet that can do the Maths on this one - if so PM me please
  9. morphine
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    morphine Swinger

    Whats it matter, take as much as you can in a lump sum, have the holiday of a lifetime, get yourself a wee job, no stress, no responsibilities and slowly head into senility
  10. floppyjocky
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    floppyjocky

    Old -baldy

    I'm easily confused mate so pardon my ignorance. Can you just clarify something. If I left tomorrow I would get £13k per annum pension. In 15 years time would this then go up by the rate of inflation accumulated over the 15 years or does it start to increase from that year ie aged 55 -so at age 55 i would get £13k plus whatever the previous years rate of inflation was ? or is it increasing in the background (by the annual rate of inflation)for the 15 years so it suddenly goes up leaps and bounds ?

    I think I know what I mean. :)

    Thanks
  11. oldbaldy
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    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Floppyjocky, you will get a large increase at age 55.
    You are correct in assumming your pension increases (at the rate of inflation) tick along in the background. They write to you just after your birthday with the new amount. This will take into account both the inflation uprating and any abatement for commutation. Dependant upon inflation in the intervening years it could be a hefty uplift.
  12. CRmeansCeilingReached
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    CRmeansCeilingReached LE Moderator

    is our pay rise usually higher than inflation? thought they just stiffed us every year!
  13. floppyjocky
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    floppyjocky

    Oldbaldy - Thanks mate, much appreciated.
  14. oldbaldy
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    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Different question CR.
    Have a word with your Federation Rep!!


    But in the mean time have a look at the Forces Pension Society.
    http://www.forpen.co.uk/
  15. CRmeansCeilingReached
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    CRmeansCeilingReached LE Moderator

    not that bothered, just with the track record of pay "rises" (like the good old "two stage, give you f*ck all till december" shafting)... i didn't want people to assume that we are NECESSARILY worse off by "only" getting the annual rate of inflation, rather than the army annual pay rise award. :)
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