Pension increase at 55

Discussion in 'Finance & Pensions' started by Sumo, Jul 23, 2012.

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  1. Hi I had a butchers around site and cannot see this Qraised.
    As a % does anyone know how much the pussers pension goes up to for those thatdid max commutation on leaving after 22year service?

     
  2. Whatever advice you receive at RR might be useful but even at its best it will be 'Unofficial'.

    That might be Ok if you only want a rough idea.

    Otherwise these people are your best bet for a relatively small stake (I don't know if their special promotion is still valid though)

    http://www.navy-net.co.uk/finance-p...ension-society-protecting-your-interests.html



    Bob
     
  3. Thanks, ball park % was all was after, does not realy matter how much as her indoors will spend all + more
     
  4. Thanks I'll have a look later its a bared site from work web
     
  5. Sumo, prepare to be disappointed........, much better than nothing and grateful for it etc. Try doubling what you are getting now, then knocking about 10% off.
     
    • Like Like x 1
  6. chieftiff

    chieftiff Moderator

    It's fairly simple to calculate how much you should get, obviously you won't know exactly how much until you are within a few months of turning 55 but you'll get a good guide. Take your pension on discharge, before commutation, and compound all the annual pension increases in (RPI until last year then CPI - available from the National Statistics website) If that's too tricky try reading this thread on ARRSE which also includes a handy spreadsheet on page 1 that you just need to fill in with the appropriate information (RPI rates and pension on discharge: Pension Increase
     
  7. If your not arsed doing all your sums and percentages, you will get around a grand a year extra.
     
  8. Complete bollocks.
     
    • Like Like x 3
  9. There you go, Sumo. You won't get a better unofficial answer than that...:laughing9:
     
  10. chieftiff

    chieftiff Moderator

    Quite, if you assume 2% pa (the target inflation rate) and take my own pension of £12800, that will rise to £17227 after 15 years just using a basic compound interest calculation. In reality recent years have seen a 5% RPI, a 4.2% RPI and 0% RPI for pension purposes (it was actually -0.8% but thankfully negative RPI doesn't reduce your pension incremental increase) so in the long term you are likely to see a higher rise especially with inflation set to rise year on year marginally for the next 4-5 years.
     
  11. Oddly enough, on reading this thread, I used the 2% without being aware that it was a target inflation rate, I just wanted to be conservative (there's a first). My guess is that I can roughly double (very roughly) and bung on a hundred for the commutation. Think I'll transfer my basic tax rate to my civvy pay as well so pension will be 'Guiness & Smarties' whilst pay can cover DDs. mortgage etc and grow into a bit of a nest-egg. Then I'll buy a yacht. A small yacht.

    Eighteen months...mmm...
     
  12. chieftiff

    chieftiff Moderator

    Guzzler if you follow the link you'll find the public sector preserved pension multipliers in an excel spreadsheet, simply find the month your pension came into payment and multiply the full pension amount by the multiplier, that's what your pension is worth today pa. Pensions increase - HM Treasury
     
  13. Many thanks. I've been a tad lazy to be honest, but may as well have a look. Ta.

    Edit: Thanks but that just gave me a headache - didn't really understand a word. It would appear that I have Norway Chris-esque levels of thickness. Depending which bit I read I get either x1.0416 or x1.3664 increase. Even the latter is shit and nowhere near the almost double I had been hoping for.
     
    Last edited: Jul 23, 2012
  14. That's what I did, I now get more in the bank per month from my pension than I do from the civvy job, And very nice it is too :)
     
  15. To be honest applying one's tax code to pension makes sense as it's a constant. As usual something making sense was my stumbling block. Having a vague idea of your income (and an even vaguer one of your pension) that doesn't sound too bad - more than I'll expect of course but not bad.

    Edit: Belay that. Forgot that you did about 70 years. Man's time.
     
    Last edited: Jul 23, 2012
  16. Last Sept, 2.1/3 X increase. may be slightly less now cos of lower inflation.
     
  17. Thanks Topstop. Did you commute?
     

  18. Yes, max. .
     
  19. Thanks for that.

    *gets out yacht catalogue*
     

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