Armed Forces Pension Calculator
Estimate your UK Armed Forces pension and tax-free lump sum based on service years and final pay.
Understanding Your Armed Forces Pension
Estimate your Armed Forces pension and lump sum based on your years of service and final pensionable pay. This calculator provides a simplified projection for UK Armed Forces personnel to help with financial planning for retirement.
Key Factors Explained
- Final Pensionable Pay: This is the salary on which your pension is calculated. It's typically your basic pay in the last year of service, but can vary between pension schemes.
- Years of Service: This is the total reckonable service that counts towards your pension. The more years you serve, the larger your pension will be.
The Formula
This calculator uses a simplified, generalized formula to provide an estimate. Official calculations depend on your specific scheme (AFPS 75, AFPS 05, or AFPS 15) and are more complex. This model is intended for illustrative purposes only.
Annual Pension = (Years of Service / 60) × Final Pensionable Pay
Lump Sum = Annual Pension × 3
Frequently Asked Questions (FAQ)
Is this calculator accurate for all pension schemes?
No. This calculator provides a generalized estimate. Each Armed Forces Pension Scheme (AFPS 75, 05, 15) has its own unique and complex rules. For an official forecast, you should request one from Veterans UK.
What is a tax-free lump sum?
Most armed forces pensions include a one-off tax-free lump sum payment upon retirement, in addition to the annual pension. It is typically a multiple of the annual pension amount.
When can I claim my pension?
The age at which you can claim your pension depends on your scheme and your age at discharge. Claiming before the scheme's normal pension age may result in a reduced pension.
For a more in-depth guide, read our detailed article on this topic.