The pension scheme for the UK armed forces, providing retirement income for service members.
The Armed Forces Pension Scheme (AFPS) is a government-backed pension plan designed to provide financial security for UK military personnel upon retirement. It offers a range of benefits, including a regular income after leaving the service, which is calculated based on rank, length of service, and salary. The scheme has undergone several iterations, with the most recent being AFPS 15, introduced in 2015. This scheme is a career average revalued earnings (CARE) pension, meaning benefits are based on average earnings throughout a service member's career rather than final salary. Members of the armed forces are automatically enrolled in the scheme, ensuring they accrue pension benefits from the start of their service. The AFPS also provides options for early retirement, ill-health retirement, and benefits for dependents in the event of a member's death, making it a comprehensive support system for military personnel transitioning to civilian life.
Who is eligible?
Eligibility for the Armed Forces Pension Scheme (AFPS) extends to all regular members of the UK armed forces, including the Royal Navy, Army, and Royal Air Force. Service members are automatically enrolled in the scheme from the start of their military career, ensuring they begin accruing pension benefits immediately. The scheme covers those who have served under different iterations, such as AFPS 75, AFPS 05, and the current AFPS 15. Reservists may also be eligible under specific conditions, depending on their service commitments and length of service. Additionally, the scheme provides provisions for early retirement due to ill health and offers benefits to dependents in the event of a member's death. This comprehensive coverage ensures that all eligible personnel receive the financial support they need as they transition to civilian life.
What benefits does this provide?
- Pension Benefits: Provides a regular income upon retirement, based on rank, length of service, and final salary or career average earnings, depending on the scheme version.
- Lump Sum Payment: Offers a tax-free lump sum upon retirement, typically three times the annual pension amount.
- Early Departure Payment (EDP): Available for those who leave before the normal pension age but have served a minimum period, providing a monthly income and lump sum.
- Ill-Health Benefits: Offers immediate pension benefits if discharged due to medical reasons, with the amount depending on the severity of the condition.
- Dependents' Benefits: Provides financial support to eligible dependents, including a pension for spouses, civil partners, and eligible children in the event of the member's death.
- Index-Linking: Ensures pensions are adjusted annually in line with inflation, maintaining the purchasing power over time.
How do I apply?
- Check Eligibility: Ensure you meet the criteria for the Armed Forces Pension Scheme (AFPS) based on your service length and type.
- Gather Documents: Collect necessary documents such as your service number, National Insurance number, and any previous pension statements.
- Complete Application Form: Obtain and fill out the appropriate AFPS application form. Forms can be found on the Ministry of Defence website or through your unit's administration office.
- Submit Application: Send the completed form and required documents to Veterans UK, either online or via post. Ensure all information is accurate to avoid delays.
- Await Confirmation: After submission, Veterans UK will process your application. You will receive confirmation and details of your pension benefits.
- Contact Veterans UK: For assistance or queries, contact Veterans UK via their helpline or email for guidance throughout the process.
Summary
The Armed Forces Pension Scheme (AFPS) is a vital support system for UK military personnel, providing financial security upon retirement. It offers a regular income based on rank, service length, and salary, with options for early retirement and ill-health benefits. The scheme ensures automatic enrolment for regular service members, covering various iterations like AFPS 75, AFPS 05, and AFPS 15. Reservists may also qualify under certain conditions. Benefits include a tax-free lump sum, early departure payments, and financial support for dependents. Pensions are index-linked to inflation, maintaining value over time. To apply, check eligibility, gather necessary documents, complete the application form, and submit it to Veterans UK. Assistance is available through their helpline or email. This comprehensive scheme ensures a stable financial transition to civilian life for military leavers.
Useful Links
- Gov.uk Armed Forces Pensions: This official government page provides comprehensive details on the different Armed Forces Pension Schemes, including eligibility and benefits.
- Armed Forces Pensions
- Forces Pension Society: An independent, not-for-profit organisation that offers guidance and support on Armed Forces pensions.
- Veterans UK: Part of the Ministry of Defence, this site offers information on pensions, compensation, and support services for veterans.
- MoneyHelper Armed Forces Pensions: Provides advice and guidance on managing your pension and financial planning for service leavers.
- Armed Forces Pensions
- Royal British Legion Finance and Debt: Offers support and advice on financial matters, including pensions, for veterans and their families.
- Finance and Debt
- X-Forces Enterprise: Provides support for service leavers looking to start their own business, including financial advice and pension considerations.
- Civvy Street The Royal British Legion: Offers resources and support for transitioning to civilian life, including information on pensions and financial planning.
- The Royal British Legion
