Pension at 55

Discussion in 'Armed Forces Pension Scheme' started by electric_citizen, Jun 16, 2008.

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  1. Just got out after 22 and get a pension that is abated due to commutation. I have asked a three people who are in receipt of a pension who have turned 55 what was the increase like and they have given three different (widely ranging) answers.

    Can anyone please give a rough, ball-park figure what the increase is likely to be? So far the answers I have had are an increase of x 1.2 to x 2.5 times.

    Many thanks in advance
  2. As mentioned on here

    There is a lot more about which rate is used etc etc but as you asked for a rough ballpark figure of what the increase is likely to be then roughly 1.2 to 2.5 times what you get now is about right. :)

    Have a look at this link for a more indepth post on the whole thing
  3. As far as I remember, your pension will go up to what it would have been if you did not take any commutation + that years inflation. That's on a 75 pension scheme.

    My understanding - not fact!

    And what's more I'll deny of ever hearing of Arrse, being in the army or even looking at a tank!
  4. That's how I see it too.

    Basically if you didn't commute and took a larger monthly pension you would get more over the 15 year period than the extra wedge in commutation would give.

    Isn't a bit late to be asking questions like these if you're already out....?

    I will also deny all knowledge of this thread if I’m talking shite - which is very possible.
  5. Sort of. At 55 pension increases to figure before commutation plus all of the RPI increases up to 55 birthday. Then increases by RPI each year.

    See links in post above as been well done before.
  6. Many thanks for your replies, it still doesn't clear things up though, and yes I have been asking the questions before leaving and still haven't had a full answer. I would have thought that everyone, regardless of service or commutation who has done 22 would get the exact same amount for the rank-ranged pension that they qualified for at 55?

    Thank you to Steven for providing the link where Litotes put in all the effort to make the calculation as simple as posssible.

    I deny all knowledge of myself, ARRSE and never even started this thread.
  7. From one of the links I posted earlier:

    If the above doesn't answer your question then I am not sure I understand exactly what your question is!!??

    Don't forget it is about reckonable service as well as rank. If you have done 22 years service you get 22 years pension, if you do 23 years service you get 23 years pension etc. There is a formula kicking around somewhere that may also be on one of the links already provided or on the pension website or similar.

    Know the sums are something like 22/37 x ?? but can't remember the ?? figure. For example in my case it was 23 years, 11 months (23.92)/37 x ??
  8. But taxed at source ... unlike the commutation which is tax free.
  9. pension at 55 bus pass at 60 wtf
  10. You won't notice the difference when you hit 55, believe me. Get a pension plan going on the day you join up, and stick as much into it as you can afford. (Bit late for you, citizen, I know! :D )