Army Rumour Service

Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Pension Increase at 55

Hi all,

I am currently receive an army pension, I'm understood to believe that it will increase when I am 55, i have tried to gain a projection of what it could be, any help will be appreciated.

left in 2009 at 40 on a SSgt pension -

but how much will it increase by when i hit 55.
 
You should receive updates from the paying agency (P60 etc) and on there is a number for enquiries. The upgrade is automatic and they will write to you beforehand telling you your new figures
 
I am currently receive an army pension, I'm understood to believe that it will increase when I am 55, i have tried to gain a projection of what it could be, any help will be appreciated.

left in 2009 at 40 on a SSgt pension -

but how much will it increase by when i hit 55.

You could wait until your 55th Birthday and it will be a pleasant surprise

Archie
 

Rooper

War Hero
Depends on whether you took commutation or not. If you didn’t just compare the Consumer Price Index increase between then and now - about 27.4% by a quick check.
 
Last edited:

Longinthegums

Old-Salt
You will receive a 250 percent increase at 1512 economics. Should buy you a pair of socks and a bottle of Lidl sherry.
 

Rooper

War Hero
I took full commutation
In that case you need your pre-commutation figure and then add the CPI increase.

For me leaving the Regular Army in 2006 to my 55 birthday last year worked out about 41% taking into account commutation.
 
Have a look at
Public service pensions increase: 2020 Find the multiplier rate for the month and year that your pension started and multiply your full pension figure (before commutation) by the applicable rate.
 
i have tried to gain a projection of what it could be, any help will be appreciated.

Did you write to them for a pension projection? When I asked them on the phone about getting one they told me I had to write to them for one.

I wouldn't hold your breath though, Over a month later and I'm still waiting for them to unfvckup my pension
 

Arse Gravy

War Hero
Hi all,

I am currently receive an army pension, I'm understood to believe that it will increase when I am 55, i have tried to gain a projection of what it could be, any help will be appreciated.

left in 2009 at 40 on a SSgt pension -

but how much will it increase by when i hit 55.
Get in touch with Equinity and they will give you a pension prediction. I asked for one last year and it showed a 45% increase upon reaching 55.

I left as a WO2 in 2010.
 
Hi all,

I am currently receive an army pension, I'm understood to believe that it will increase when I am 55, i have tried to gain a projection of what it could be, any help will be appreciated.

left in 2009 at 40 on a SSgt pension -

but how much will it increase by when i hit 55.

essentially it will be what your annual pension was pre commutation as the starting point with the annual CPI addition for every year from when you leave until you are 55 when it suddenly all catches up and forms the new start point figure, thereafter it will hopefully increase by the CPI but if you look up the annual CPI numbers you will note that some years they can actually be zero! or very low
 

Forces Pension Society

Sponsor
Sponsor
Hi all,

I am currently receive an army pension, I'm understood to believe that it will increase when I am 55, i have tried to gain a projection of what it could be, any help will be appreciated.

left in 2009 at 40 on a SSgt pension -

but how much will it increase by when i hit 55.
Just ring or email Equiniti Paymaster - 0845 121 2514 or veteransukpensions@equiniti.com
 

WOBOY

Crow
Beware u may end up giving nearly half of your pension increase back in tax. I left in 07 WO2 and am 55 in Sept 2022. Its looking like my pension of 9.8k fulky commuted will increase to around 17k on the payday after my 55th. Nice. However.... I have the normal £12500 tax allowance and pay no tax on my commuted pension of £9800, and no tax on the first £2700 of my civilian salary, and then 20% tax (and 40% on the rest) is taken from THE REMAINDER of my civilian salary.

When I am 55 my pension increases to around 17k, I WILL pay 40% tax back to the government on the 7.2k rise. So actually only end up with 4.2k .... about £350 a month. Which seems only fair........ think I might reduce my working hours at 55 to offset the pension increase so that I don't end up giving most of it back in tax. Give in one take it back in the other.
 
Beware u may end up giving nearly half of your pension increase back in tax. I left in 07 WO2 and am 55 in Sept 2022. Its looking like my pension of 9.8k fulky commuted will increase to around 17k on the payday after my 55th. Nice. However.... I have the normal £12500 tax allowance and pay no tax on my commuted pension of £9800, and no tax on the first £2700 of my civilian salary, and then 20% tax (and 40% on the rest) is taken from THE REMAINDER of my civilian salary.

When I am 55 my pension increases to around 17k, I WILL pay 40% tax back to the government on the 7.2k rise. So actually only end up with 4.2k .... about £350 a month. Which seems only fair........ think I might reduce my working hours at 55 to offset the pension increase so that I don't end up giving most of it back in tax. Give in one take it back in the other.
Have you considered putting more into your civvy pension scheme? Payments into my scheme are on a salary sacrifice basis before the tax man gets hold of it. @Bravo_Bravo will hopefully correct my poor terminology and explain it properly.
 
When I am 55 my pension increases to around 17k, I WILL pay 40% tax back to the government on the 7.2k rise. So actually only end up with 4.2k .... about £350 a month. Which seems only fair........ think I might reduce my working hours at 55 to offset the pension increase so that I don't end up giving most of it back in tax. Give in one take it back in the other.

Not quite true.

Up to £12.5k - Tax free

£12,5k - £37.5k - 20% Tax

£37.5k - £150k - 40% Tax

Many years ago when I kicked off about the amount I was paying in tax. My good mate put it in perspective for me.

'' Think yourself lucky that you earn enough to pay 40% tax''

I'll leave it for others to furnish you with methods of being tax efficient.
 

Fat POM

Old-Salt
Beware u may end up giving nearly half of your pension increase back in tax. I left in 07 WO2 and am 55 in Sept 2022. Its looking like my pension of 9.8k fulky commuted will increase to around 17k on the payday after my 55th. Nice. However.... I have the normal £12500 tax allowance and pay no tax on my commuted pension of £9800, and no tax on the first £2700 of my civilian salary, and then 20% tax (and 40% on the rest) is taken from THE REMAINDER of my civilian salary.

When I am 55 my pension increases to around 17k, I WILL pay 40% tax back to the government on the 7.2k rise. So actually only end up with 4.2k .... about £350 a month. Which seems only fair........ think I might reduce my working hours at 55 to offset the pension increase so that I don't end up giving most of it back in tax. Give in one take it back in the other.
On a similar note, when that happened to me I reduced my working week accordingly and eventually retired early. Better work/life balance. The increase gives you options it is up to you what you do with them.

Enjoy!
 
Not quite true.

Up to £12.5k - Tax free

£12,5k - £37.5k - 20% Tax

£37.5k - £150k - 40% Tax

Many years ago when I kicked off about the amount I was paying in tax. My good mate put it in perspective for me.

'' Think yourself lucky that you earn enough to pay 40% tax''

I'll leave it for others to furnish you with methods of being tax efficient.
I think his meaning is that, as he is already earning enough between pension and salary to be in the 40% tax bracket, the extra uplift in pension will effectively also be taxed at 40%.

He could look at it as his pension is broadly tax free with £4.5K taxed at 20% but then more of his salary will be taxed at 40% and he’ll be in the same position.

As to your second point on luckiness I certainly count my lucky starts I get paid enough to pay 41% tax to the utterly atrocious Scottish government for them to throw around effectively buying votes from the great unwashed. All while running a massive budget deficit and harping on about Independence. It’s for winners!
 

WOBOY

Crow
Not quite true.

Up to £12.5k - Tax free

£12,5k - £37.5k - 20% Tax

£37.5k - £150k - 40% Tax

Many years ago when I kicked off about the amount I was paying in tax. My good mate put it in perspective for me.

'' Think yourself lucky that you earn enough to pay 40% tax''

I'll leave it for others to furnish you with methods of being tax efficient.

Not sure where you get your figures from but these are off the Govt website. And luck had nothing to do with it .............. hard work, planning and the Army mentality did

BandTaxable incomeTax rate
Personal AllowanceUp to £12,5000%
Basic rate£12,501 to £50,00020%
Higher rate£50,001 to £150,00040%
Additional rateover £150,00045%
 

WOBOY

Crow
Not quite true.

Up to £12.5k - Tax free

£12,5k - £37.5k - 20% Tax

£37.5k - £150k - 40% Tax

Many years ago when I kicked off about the amount I was paying in tax. My good mate put it in perspective for me.

'' Think yourself lucky that you earn enough to pay 40% tax''

I'll leave it for others to furnish you with methods of being tax efficient.
On a similar note, when that happened to me I reduced my working week accordingly and eventually retired early. Better work/life balance. The increase gives you options it is up to you what you do with them.

Enjoy!
Yep that's the idea - work / life balance, I will be dropping down a day and playing golf and taking the wife for lunch rather than paying 40% to the Govt thank you! Wont be working the same and paying more into my private pension. When I retired from the Army a Civvy pension bod in my first job said to me that its not a about what age you want to retire, but how much money do you want to retire with? When you can achieve that pension amount - its time to retire.
 

Latest Threads

Top