Pension increments

Discussion in 'Armed Forces Pension Scheme' started by exbluejob, Jan 9, 2011.

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  1. I 'retired' having served 25 years and was awarded an immediate pension. I did a resettlement commutation so my pension has been abated until age 55 which is in 13 months time :) I've been thinking about the increase when the abatment ceases but also the accrued pension increases over the intervening years.
    Does anyone know what the yearly increases have been since my official retirement date 28th April 2000? The xafinity paymaster newsletter make you read the whole thing, it's not a headline (yes I'm a lazy twat) I'm kinda working on an average 3% per annum compounded over 12 years, so if my full pension was £10k (because its an easy number to work with)
    2001 - 10k + 3% = 10.3k
    2002 - 10.3 + 3% = 10.6
    2003 - 10.6 + 3% = 10.9
    2004 - 10.9 + 3% = 11.2
    2005 - 10.9 + 3% = 11.5
    2006 - 11.5 + 3% = 11.9
    2007 - 11.9 + 3% = 12.2
    2008 - 12.2 + 3% = 12.6
    2009/2010 If I recall correctly from the xafinity paymaster letter there was no increase.

    Thanks
    Ex BJ
     
  2. The data you're after is available on the net - this (linky) is the first one I found and the figures you want are in the second column (marked 'CZBH'), which shows the annual RPI increase for each year. There are clearer datasets out there, but I don't have time to look just now.

    Don
     
  3. Bugger - that doesn't seem to take you to the right graph. Anyway, the figures from 2001 to 2009 inclusive are: 1.8; 1.7; 2.9; 3.0; 2.8; 3.2; 4.3; 4.0; -0.5.

    Hope that helps,

    Don
     
  4. Don, thanks for the response :) The link did take me to the stats you quote in your second post. Just need to fiddle with excel and get it working out what my increase has been so far.

    Cheers!
     
  5. I tried to do what you are doing with my pension just before I reached 55 and came up with a figure which bore no resemblance to my actual pension increase when I turned 55, ok it was 9 years ago, but basically my pension doubled from my pension aged 41 when I retired to the pension paid when I reached 55, so be wary of trying the increases and compunding it, the paymaster seems to have some secret formula hidden they apply which is set up to undo the best calculations of mice and men - and ex squaddies. And I did take into consideration the "loan" for resettlement grant etc.
     
  6. Taz, thanks for your response :) I wrote the RAF pensions folks over the weekend and they replied at 0742 today (shurely shome mishtake!) pointing me at the paymaster as the people who deal with payments at age 55 and above. So I forwarded the email trail to them and await their response, which I'll pick the bones out of and post in here. At the moment I'm roughly looking at a 50% net pension increase but I pay 40% tax as I got a decent civvie job (in my profession) when I 'retired'.

    Cheers!
     
  7. Update: Paymaster staff replied to my email saying that they had no secure email facility (Huh? I'm not James Bond so couldn't decrypt anything anyway) they're snail mailing to my home today. Nice quick responses from both RAF pensions and paymaster so thumbs up to both :) I'm working away from home this week so it'll be Friday evening at the earliest before I see any response.
     
  8. OK The response arrived today and the 'official' percentage increases are:
    2000 - 1.1
    2001 - 3.3
    2002 - 1.7
    2003 - 1.7
    2004 - 2.8
    2005 - 3.1
    2006 - 2.7
    2007 - 3.6
    2008 - 3.6
    2009 - 3.9
    2010 - 0
     
  9. Thanks for bothering to post this.

    I have a few years to go yet but it is nice to have a sort of rough guide to work with.

    Still can't see how retired_taz got double but he is not the first one I have heard this from so heres hopeing :)
     
  10. Am going back a few years, but my pension in 1987 used to be around £480 a month and after turning 55 it went up to around £890- more now of course as I have had quite a few increases, but of course the uplift included not having to pay back the resettlement loan .. and my pension is a 22year pension, not 37Yr.

    so thats how it nearly doubled, all before tax of course.
     

  11. i'm sure one of my ex reme chums sent a generic email out to listed friends ref tax, his income went into the 40% tax bracket when his combined pension and wages were added up. He had a switched on accountant who got his pension switched to 40% and wages stayed at lower rate. being the higher figure this saved him some serious wonga. I used this info when i was layed off and started studying again, rang the tax office go declared a student and pension only income (which was true,by the way!) tax on pension went from £225 a month to £37!!! Always worth checking is the point i'm making
     
  12. Sorry if I'm being dim, but what difference does it make whether your salary or pension is at the higher rate? Is it not your overall combined income that is taxed, with the surplus that is over your lower threshold being taxed at 40%? I may have missed the point though, as I am self-employed and do my own tax calculations.
     
  13. to be honest, not a clue! It was a very long winded email with lots of numbers, the gist of it (gleamed from the sum up) was the tax office had tried to stiff him, because when the 2 incomes were added together it went into the 40% bracket and tried to tax him at that for both. Can't bloody find the email either, i'll shut up now!!!