Pension Increase

#1
After serving for the 22 and being out for 2 years now my question is:-
What is the increase on our pensions as I know it is index linked so does anyone know what the increase is or if not what is the index link and how do I go about finding out what it is???
 
#2
Pretty sure it's 5% this year as it's based on the RPI in September of the previous year.
 
#3
QNOGUNS said:
After serving for the 22 and being out for 2 years now my question is:-
What is the increase on our pensions as I know it is index linked so does anyone know what the increase is or if not what is the index link and how do I go about finding out what it is???
I think that you will find that after 22 years service you will not get an increase until the age of 55.
 
#4
That is kind of correct. The actual amount you receive will not go up until age 55, however the figure is notionally increased in line with the RPI.

For example - if you left on a pension of £10,000 that is the rate that would remain in issue until you hit age 55.

If the pension notionally goes up by 3% the first year (now £10,309.28) and 4% the next year (£10738.83) etc etc until you hit age 55. Whatever the notional figure has risen to becomes the new rate of pension in issue at the age of 55, and is then increased annually. You do not get a giant lump sum of all the index linking that you haven't received over the years - just a big rise in pension (especially if you had resettlement commutation, as this is repaid in full when you reach 55 also).

SPVA at Glasgow will be able to advise you of the annual percentage increases. I am not sure if they take the RPI or a figure loosely associated with it. They will also be able to advise you on the current value of your notional increases.

Hope that helps!
 
#5
OK then, has anyone out there recently turned 55, and just had a big increase in their pension payments?
Just a ball park figure to give us an idea how the fund has grown in silence in the last 15 years. obviously that could be different to what i may expect in 15 and a half years time.
 
#7
To give you some idea urban_spaceman; I'm just turned 55, after taking commutation at 40 after 22 yrs I was left with £5800 gross and thats what I got for the next 15 years. On my 55th birthday it went up to £11000. I think it will go up this month by about 4.5/5% as that was the RPI in I believe mid November.
 
#8
I retired at age 41 nearly 20 years ago. When I reached 55 my pension increased by 92 per cent. Mind you I can thank Maggie for most of that! :D
 
#9
strongbox said:
To give you some idea urban_spaceman; I'm just turned 55, after taking commutation at 40 after 22 yrs I was left with £5800 gross and thats what I got for the next 15 years. On my 55th birthday it went up to £11000. I think it will go up this month by about 4.5/5% as that was the RPI in I believe mid November.
As a test of my spreadsheet, was your IP before commutation around the £7400 mark?

AFPS 75 is (I believe) based on the RPI for September of the previous year - therefore you should get a 5% increase this year.

From reading the AFPS 75 booklet, there is no mention of a minimum pension increase (some people have talked of 2.5% minimum) so Strongbox may have suffered a few low increases in the 40 - 55 years period (1994 = 1.8%, 2000 = 1.1%, 2002 & 2003 = 1.7%)

I created a spreadsheet (purely for shits and giggles) that may give people a rough idea of what to expect at age 55. It is very rough in that it projects a pension based upon the average of RPI's from retirement age, but as the disclaimer says - don't buy a Ferrari based on the info given!
 

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#10
A question for those in the know i left in 1988 having served 12yrs was told at the time 12/22 of full pension would commence at age 55 but now told it will be at age 60 is this true or did i apply to the wrong dept
 

oldbaldy

LE
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#11
guzzler said:
A question for those in the know i left in 1988 having served 12yrs was told at the time 12/22 of full pension would commence at age 55 but now told it will be at age 60 is this true or did i apply to the wrong dept
Aged 60 is correct.
 
#12
Minimum guaranteed payment is 2.5% according to my this year's newsletter that came with the increase notification (5%).
 
#13
Maybe a bone question but...

I get a service attributable pension (served 13yrs). Is that it now for life or will another service pension kick in when i'm 55/60??

Basically, does a war pension cancel out the main pension..if you get my drift?


Cheers.
 
#16
urban_spaceman said:
OK then, has anyone out there recently turned 55, and just had a big increase in their pension payments?
Just a ball park figure to give us an idea how the fund has grown in silence in the last 15 years. obviously that could be different to what i may expect in 15 and a half years time.
Mutineer is right.

At 55 the pension became turbo charged, I cannot remember the exact percentage but I seem to remember it was around 65%. The figures will vary according to what has happened in the way of pension increases between the 22 year point/age 47 and 65, and what if any has been commutated.
 
#17
Had my 55 birthday last week , so I rang the pensions dept and Ive been informed my increase will be almost doubled....will get the info in the post at the end of the month. :D
 
#18
chris951 said:
strongbox said:
To give you some idea urban_spaceman; I'm just turned 55, after taking commutation at 40 after 22 yrs I was left with £5800 gross and thats what I got for the next 15 years. On my 55th birthday it went up to £11000. I think it will go up this month by about 4.5/5% as that was the RPI in I believe mid November.
As a test of my spreadsheet, was your IP before commutation around the £7400 mark?

AFPS 75 is (I believe) based on the RPI for September of the previous year - therefore you should get a 5% increase this year.

From reading the AFPS 75 booklet, there is no mention of a minimum pension increase (some people have talked of 2.5% minimum) so Strongbox may have suffered a few low increases in the 40 - 55 years period (1994 = 1.8%, 2000 = 1.1%, 2002 & 2003 = 1.7%)

I created a spreadsheet (purely for shits and giggles) that may give people a rough idea of what to expect at age 55. It is very rough in that it projects a pension based upon the average of RPI's from retirement age, but as the disclaimer says - don't buy a Ferrari based on the info given!
Chris

Many thanks for posting this - cracking bit of work

Bunny
 
#19
oldbaldy said:
guzzler said:
A question for those in the know i left in 1988 having served 12yrs was told at the time 12/22 of full pension would commence at age 55 but now told it will be at age 60 is this true or did i apply to the wrong dept
Aged 60 is correct.
And you have to apply for it; it isn't automatic (because they don't keep track of you....allegedly). :twisted:

Litotes
 
#20
QNOGUNS said:
After serving for the 22 and being out for 2 years now my question is:-
What is the increase on our pensions as I know it is index linked so does anyone know what the increase is or if not what is the index link and how do I go about finding out what it is???
Pension increases are found here for 2009 not sure if they are published yet :wink: Your Pension Rates

Multiply the full annual pension by the % by the date you were discharged.
 

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