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Pensions

Pensions
resettlement guide

This section provides an overview of sources of information for both military and state pensions. Review the documentation, the library articles and the links to government and authoritative websites to find the expert advice you need.

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Armed Forces Pensions

Armed Forces pensions, once awarded, are adjusted in April each year by the Consumer Price Index (CPI). The CPI rate used is the CPI headline rate for the September prior to the April adjustment the following year. This rate is formally announced in October. The CPI increase which will come into force next April has been announced as 0.5%.

This increase, known as the Pension Increase (PI), does not come into force on the 1st April but rather on the first Monday after the beginning of the new tax year – so, for 2021, it comes into force on 12th April.

There is a Government produced table which divides the year (1 April – 31 March) into 13 parts and the first PI is proportionate. The pensions of those leaving in the first few weeks of April will get the full PI in the following April. The increases for those leaving after the first few weeks April are then paid in the following April on a sliding scale, culminating in those leaving in the final few weeks of March getting no PI adjustment at all in respect of that first year. The full increase is paid in subsequent years.

If you are leaving with a preserved AFPS 75 or AFPS 05 pension, or a deferred AFPS 15 pension, it will be increased until such time as your draw your benefits to take account of all the PIs that have occurred since you left.

If you are a member of the Forces Pension Society and would like to know more about PIs or any other pension issue, email us on pensionenquiries@forpen.co.uk. If you would like to learn more about us, visit www.forcespensionsociety.org.

Armed Forces Redundancy Schemes 

The redundancy scheme that applies will depend on when you joined the Armed Forces. Refer to the external links section below for more detail.

War Widow's or War Widower's pension
If your husband, wife or civil partner died as a result of serving in the Armed Forces, you may get a War Widow’s or War Widower's pension. This is based on your husband, wife or civil partner's pay.

For more information, contact Veterans UK.

If you have health problems because of being in the Armed Forces, you may be entitled to payments under the war pension scheme or the Armed Forces compensation scheme (AFCS).

Useful Organisations
More detailed support is available for members of the Forces Pension Society.

"We are the trusted source for Armed Forces Pensions advice, and as an independent, not-for-profit organisation, we act as a pension watchdog for the entire military community. We provide accurate, timely and credible technical pension advice and other services to our Members; we represent the whole Armed Forces Community at the top tables of government in relation to Armed Forces Pensions, holding to account when necessary; and we raise awareness across the Armed Forces Community on the complexities and benefits of their Armed Forces Pension"

Financial Aspects of Resettlement (FAR) Briefs
Pensions are discussed in the Financial Aspects of Resettlement (FAR) Briefs. Find the next available date for this briefing and plan to attend.

State Pensions
The Basic State Pension is the main component of the State Pension. This may be based on your own or your spouse’s National Insurance record. Links to the government websites can be found in the External links section below under State Pensions.

For further information about spouses’ and civil partners’ pensions calculations, please see the ‘Access to contributory state benefits for spouses and civil partners of members of the armed forces’ document.



External links

(All external links will open in a new window)
Military Pensions
Private Pensions
Living & Working Abroad
State Benefits
What to do with your P45

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