Pension Forecasting

[Lingyai]

Ayone have any idea how you can do a "rough" forecast to get some idea what pension can be expected at 65 or whatever. Is there some kind of equation used per length of service?

 

[TheCommunicator]

http://www.mod.uk/DefenceInternet/AboutDefence/Issues/Pensions/PensionsCalculator.htm

Have a look at this, don't know if it will be any good. It won't let you put a leaving date prior to the introduction of AFPS 05 but you could fudge around with the dates to get an idea. As long as you can get a salary on leaving and preserved pension figure then you can work out the ratio between the two and apply that to your final salary when you left.

Also, you could try contacting the AFPAA, they should be able to give you an accurate pension forecast.

 

[Greenie]

Ayone have any idea how you can do a "rough" forecast to get some idea what pension can be expected at 65 or whatever. Is there some kind of equation used per length of service?

Very rough equation is RN pension at 22 years rate you will get a fraction of it say you did 9 years then at age 60 you will get 9/22 nds of the current 22year rate.

At 65 you will get the state oap and an additional pension based on your contributions to SERP that the Navy would have paid for you.

OAP is dependant on your National health stamp contributions-and years paid in. So if you live and work abroad make sure your salary is into a UK bank and gets taxes paid on it!!

 

[In_my_day]

Ayone have any idea how you can do a "rough" forecast to get some idea what pension can be expected at 65 or whatever. Is there some kind of equation used per length of service?

Very rough equation is RN pension at 22 years rate you will get a fraction of it say you did 9 years then at age 60 you will get 9/22 nds of the current 22year rate.

At 65 you will get the state oap and an additional pension based on your contributions to SERP that the Navy would have paid for you.

OAP is dependant on your National health stamp contributions-and years paid in. So if you live and work abroad make sure your salary is into a UK bank and gets taxes paid on it!!

I'm not sure that is correct, first of all isn't the pension based on 36 years, final salary, etc and a "Retained Pension"; ie not immediately payable; is not the direct equivalent of the same period's worth of paid pension. Contact the Tri-service pension centre, Kintegern House in Glasgow they will (can?) provide an accurate forecast based on current rates.

As to the OAP, servicemen pay the contracted out rates of NI and therefore will get a reduced OAP. It is possible to Buy years back. This is hopefully also possible when working abroad as I hope I am not going to have to pay several thousands in tax to get several hundreds in pension!!

IMD

 

[higthepig]

In My Day sorry to disagree,being an oap ido not get a reduced pension ,iget the full rate plus acertain piece of serps,it does tho depend on years paid in which i believe is 40 years,andyes it is possible to buy years back.

 

[Greenie]

Hig the full years are 44 for total pension ,so after you have completed them you shouldn't by rights have to pay NI contributions .
I retired early and tried to sign on and they said pis- off cos I didn't need any stamps and my Navy pension cancelled out any hand outs!!

I did 22 years for RN pension and was paid it from when I left the mob
however I think Lingyai didn't do pension time [ie 22 years] so as he's on the old 1975 scheme of SERPs he'll get proportional pension from the Gov at 65 and OAP at 65
And a fractional pension at 60 from the pusser.

 

[higthepig]

no you dont have to pay the contributions but you do,when i worked abroad i was told 4 years without paying does not affect your oap,and it didnt.I too have my navy pension and youre right you get nowt in handouts. i also have an mod pension,whic basically goes on tax,so much for retiring,but at least not as bad as some.

 

[sidon55]

Word has it that the MOD are thinking of giving proportional pensions to those who left after 7 years - 7th of 22. Has anyone heard anything about this?

 

[NozzyNozzer]

The following may be of interest to any ex-Juniors who are still serving.

House of Lords Hansard: 19 April 2006, Cols.WA225-226

Armed Forces: Recruitment

Lord Lester of Herne Hill asked Her Majesty's Government:

Further to the Written Answer by the Lord Drayson on 9 March (House of Lords Hansard: WA 151–52), why young recruits have their period of reckonable service taken from their 18th birthday and not from the date on which they joined the Armed Forces.

The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Drayson) replied

This provision is related to the Armed Forces pension scheme 1975 (AFPS). When this scheme was designed, other ranks' engagements commencement date was linked to the age from which time towards reckonable service for pension began—ie, the date of the 18th birthday.

However, under the new Armed Forces pension scheme (AFPS 05) reckonable service for pension purposes counts from the date of entry, irrespective of age. All new recruits since 6 April 2005 are eligible to be members of the Armed Forces pension scheme 2005. Those who joined before 6 April 2005 who are members of AFPS 75, and who will still be in service on 6 April 2006, have been given the option to transfer to AFPS 05. By doing so, they will be allowed to count any pre-18 service as reckonable for pension purposes.

 

[Lingyai]

I think Lingyai didn't do pension time [ie 22 years] so as he's on the old 1975 scheme of SERPs he'll get proportional pension from the Gov at 65 and OAP at 65

That;s right, I jumped ship after 17 years (2 of which were boys time), therefore I should get 15 years worth of a PO's pension which will probably work out to, let's say......not very much at all
Thanks for the info, these forums give you a much better feel thanks to the been there done it and got the t shirt crew, there is no substitute for experience.
Thanks again.

 

[The_Black_Pig]

I think Lingyai didn't do pension time [ie 22 years] so as he's on the old 1975 scheme of SERPs he'll get proportional pension from the Gov at 65 and OAP at 65

That;s right, I jumped ship after 17 years (2 of which were boys time), therefore I should get 15 years worth of a PO's pension which will probably work out to, let's say......not very much at all
Thanks for the info, these forums give you a much better feel thanks to the been there done it and got the t shirt crew, there is no substitute for experience.
Thanks again.

Not sure whether this helps, did 14 years fom Nov. '61.
Got a pension at 60 of £4700/yr plus a lump sum of £6000

One way of calculating your pension , use the figures that are given to you at discharge , then add say 2.5%/yr upto age 60 , will give you some idea.

 

[Greenie]

Pig ,nice one
At Sixty five you will get more dosh from the OAP service that the Pusser collected from you during your service time --its a SERP type payment
and they will call it additional pension.