Pension

Discussion in 'Armed Forces Pension Scheme' started by Spanish_Dave, Jun 20, 2006.

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  1. Spanish_Dave

    Spanish_Dave LE Good Egg (charities)

    My oldest brother is 55 in August, he completed his 22 as a WO2 aged 40, anyone any idea what his pension will go up to, he gets about £310 a month in the bank at present, paymaster has not replied to him.

    Thanks
     
  2. Go on to the National Statistics site, use the list of RPI % figures and add those %s to his pension from the time he left.
     
  3. Sloppy drills, 'Ex-BQMS'... :D
     
  4. Spanish_Dave

    Spanish_Dave LE Good Egg (charities)

    I know, didnt mean you paymaster I meant paymaster general, thanks for the info but I couldnt work it out at all
     
  5. Why not?

    You take the original figure he was awarded and add the 1st year's %, then take the result and add the 2nd years and onwards and upwards.
     
  6. Spanish_Dave

    Spanish_Dave LE Good Egg (charities)

    Ha Ha, I was a flaggy not a surveyor, I cant even find it on the site
     
  7. This was the subject of another thread a while ago and I provided the hyperlink and subsequent calculation. I will have a rummage through my messages.

    I guess about 40% increase (SWAG).

    Litotes
     
  8. I have rummaged in my old messages, and found the following:

    Link to previous pension thread

    The example I used gave a 51% increase.

    Happy to explain the calculation.

    Litotes
     
  9. The £310 appears to be a sum after tax and commutation.
    Pre tax at 23% this will be £410 at 55 years old the commutation becomes paid off and the pre tax figure should rise to £482. Using the 51% inflation figure the pension will be £727 or £8724 pa.

    Taxed £557 per month.

    Regards
     
  10. His annual goes up to £11392, roughly £950 before tax so tell him to watch out for the high tax bracket :wink:
     
  11. Thats the pension for a WO2 leaving the army today and not the inflation linked pension for someone leaving 15 years ago. Unfortunately that is not how it works.
     
  12. oldbaldy

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

  13. I was lead to believe that that is the rate they goto, might be wrong though
     
  14. Retired soldiers have their pensions linked to the retail price index. Serving soldiers pensions are linked to pay grades. over the years pay rises have been decided by the armed forces pay review board, albeit they may decide on inflation linked rise, some years they haven't.

    I am sure you have seen complaints by OAP's and politicians that the pensions should be linked to earnings rather than inflation as earnings rise faster, it is the same with the Army so the pension for a soldier leaving today will seem better than the equivalent rank in retirement.

    I hope this does not sound patronising but you cannot judge your pension at 55 by looking at the Army pensions website and looking at the amount for your rank.