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Pension

#1
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
 
#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.
 
#8
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
 
#10
EXBQMS said:
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
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
 
#11
EXBQMS said:
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
His annual goes up to £11392, roughly £950 before tax so tell him to watch out for the high tax bracket :wink:
 
#12
Commander_Vimes said:
EXBQMS said:
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
His annual goes up to £11392, roughly £950 before tax so tell him to watch out for the high tax bracket :wink:
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.
 
#14
anybar said:
Commander_Vimes said:
EXBQMS said:
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
His annual goes up to £11392, roughly £950 before tax so tell him to watch out for the high tax bracket :wink:
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.
I was lead to believe that that is the rate they goto, might be wrong though
 
#15
Commander_Vimes said:
anybar said:
Commander_Vimes said:
EXBQMS said:
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
His annual goes up to £11392, roughly £950 before tax so tell him to watch out for the high tax bracket :wink:
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.
I was lead to believe that that is the rate they goto, might be wrong though
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.
 
#16
Purely because I had a few spare minutes:

If a person leaving at 40 after 22 years service and as a WO1 received an annual pension of £12,400 (non-commuted and ball park fig)

Based on the RPI over the last 15 years (I ignored the 9.5% RPI in 1990 and substituted a nominal 2.8%)
his annual pension in 2020 aged 55 would be £18,360

For those wanting to guestimate the future, the average RPI over the last 10 years is 2.6% (rounded up)
 

oldbaldy

LE
Moderator
#17
floppyjocky said:
Purely because I had a few spare minutes:

If a person leaving at 40 after 22 years service and as a WO1 received an annual pension of £12,400 (non-commuted and ball park fig)

Based on the RPI over the last 15 years (I ignored the 9.5% RPI in 1990 and substituted a nominal 2.8%)
his annual pension in 2020 aged 55 would be £18,360

For those wanting to guestimate the future, the average RPI over the last 10 years is 2.6% (rounded up)
I take it you were bored? :D
 
#19
anybar said:
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.
Rest of post snipped....

No but what I said was I WAS LED TO BELIEVE that it went back to the current rate on reaching 55, now I may have misunderstood what the person describing the process was trying to convey to me if I have then hands up I made a mistake.
 
#20
Commander_Vimes said:
anybar said:
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.
Rest of post snipped....

No but what I said was I WAS LED TO BELIEVE that it went back to the current rate on reaching 55, now I may have misunderstood what the person describing the process was trying to convey to me if I have then hands up I made a mistake.
No worries, you can put your hands down now. unless you like them there, like Italian librarians looking for books on war heroes on the top shelf.
 

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