Armed Forces Pensions: Know Your Scheme, Know Your Entitlement

Your Armed Forces pension is one of the most valuable things your service earns you. It is funded entirely by the Ministry of Defence — you pay nothing into it directly — and it builds automatically throughout your career.

But understanding it is not always straightforward. The scheme you are on, how much you will receive, and when you can access it all depend on when you joined, how long you serve, and decisions you may need to make at transition or retirement.

This guide gives you a clear overview of how Armed Forces pensions work, answers the questions we hear most often, and points you to detailed guidance on each topic.

The three questions most people ask first

Which pension scheme am I on?

There are three main pension schemes for Regular personnel, plus a separate scheme for full-time reservists. Which one applies to you depends almost entirely on when you joined.

If you are still serving, your scheme is shown on JPA and on your annual pension statement. If you have left, Veterans UK can confirm which scheme applies to you.

Some people who served across the 2015 transition date may have service counted under more than one scheme. If this applies to you, the McCloud Remedy — still being implemented in 2026 — may give you a choice about how part of your service is treated. See the AFPS Explained Guide for the full breakdown.

How much will I get?

The honest answer is: it depends on your scheme, your rank, your pay, and how long you serve.

AFPS 75 calculates your pension from your final salary and rank at the point of leaving, multiplied by your years of service. Longer service at higher rank means a higher pension.

AFPS 05 builds a career average — a portion of your pay each year is used to calculate your eventual pension. It does not have an automatic lump sum, but you can commute up to 25% of your pension into a tax-free lump sum at the point of drawing it.

AFPS 15 works on the same career average principle, building at a 1/47th accrual rate each year, with annual revaluation in line with inflation. Your pension grows steadily with every year of service.

All schemes also include a tax-free lump sum in certain circumstances, and your pension income is taxable as regular income once you start drawing it — though it does not affect your State Pension entitlement.

The most reliable way to understand your specific entitlement is to request a pension forecast from Veterans UK — it is free, and it gives you real figures to plan around.

What happens if I leave the forces early?

Leaving before you reach normal pension age does not necessarily mean losing your pension — but the rules differ significantly by scheme, and taking your benefits early usually means a reduced income for life.

Early Departure Payments (EDP) are available under AFPS 05 and AFPS 15 for those who leave with sufficient service and are aged 40 or over:

• AFPS 05: available if you leave aged 40–55 with 18 or more years of service
• AFPS 15: available if you leave aged 40–60 with 20 or more years of service

If you leave before qualifying for an EDP, your pension is preserved — it is held for you until you reach pension age, rather than lost entirely.

AFPS 75 has different rules: non-commissioned personnel can access an immediate pension after 22 years, officers after 16 years.

If you were medically discharged, or if a physical or mental health condition prevents you from working full-time, you may be able to access your pension earlier through ill-health provisions.

How Armed Forces pensions are different from civilian ones

It is worth being clear on this, because the differences matter.

You do not contribute. Unlike most workplace pensions, you make no personal contributions to the Armed Forces Pension Scheme. The MoD funds your pension through your service. This means your pension builds regardless of what you earn or save elsewhere.

It is a defined benefit scheme. Your pension is not tied to investment performance or stock market returns. What you receive is calculated from your pay, rank, and service — it is predictable, guaranteed, and inflation-protected.

It includes survivor benefits. Every AFPS scheme includes a pension for your surviving spouse, civil partner, or (under AFPS 05 and 15) eligible long-term partner, plus children's pensions payable until age 17, or 23 if in full-time education.

It sits alongside your State Pension. Your Armed Forces pension does not reduce your State Pension entitlement. The two are separate and both payable in retirement.

Not sure which scheme you're on, or what the McCloud Remedy means for your service history? Our full breakdown of AFPS 75, 05, 15 and RFPS 05 has the answers. Find out where you stand →

Where to get free, trusted pension support

You do not need to pay for good advice on your Armed Forces pension.

Veterans UK — The official government body for AFPS administration. Free pension forecasts, Remediable Service Statement processing, and scheme queries.

Forces Pension Society — Independent experts who understand every version of the Armed Forces Pension Scheme. Highly recommended for anyone approaching transition or facing a complex pension decision.

Forces MoneyPlan — Free, confidential one-off consultation with a qualified financial adviser for serving personnel and veterans.

The Royal British Legion — Financial guidance and welfare support for veterans and families, including specialist debt advice.

Frequently Asked Questions

Do I pay into my Armed Forces pension?
No. The Armed Forces Pension Scheme is non-contributory. The MoD funds your pension throughout your service. You do not need to opt in or make personal contributions.

Can I have an Armed Forces pension and a workplace pension?
Yes. Many veterans work in civilian roles after leaving service and build up a separate workplace pension alongside their Armed Forces pension. Both are payable in retirement and do not affect each other.

What is the minimum service needed to qualify for a pension?
For AFPS 75, 05, and 15, you need a minimum of two years' qualifying service to be entitled to a pension. For RFPS 05, even one day of qualifying service earns an entitlement payable at age 60.

Is my Armed Forces pension affected if I remarry?
Your own pension is not affected. Survivor benefit rules vary by scheme — under AFPS 75, a widow(er)'s pension may cease on remarriage; under AFPS 05 and 15, survivor pensions continue for life regardless of remarriage or new partnerships.

What is the McCloud Remedy and does it affect me?
The McCloud Remedy addresses a ruling that found the 2015 pension reforms were discriminatory. If you served between 2015 and 2023, you may be entitled to choose which scheme applies to that period of service. Veterans UK is issuing Remediable Service Statements to those affected throughout 2025–2026. See the full AFPS Explained guide →

Where can I find my pension forecast?
Contact Veterans UK directly to request a free pension forecast. If you are still serving, your annual pension statement via JPA gives a projected figure.

Explore all money and finance support for the Armed Forces community on Troopr's Finance Hub →