Military Pensions & UK Armed Forces Pension Scheme
If you’ve served in the British Army, Royal Navy or RAF, you’ll have heard of the Armed Forces Pension Scheme (AFPS) — one of the most valuable benefits of military service. But for many, terms like army pension calculator, AFPS 75, or military pension scheme can feel confusing.
Troopr brings together the essentials on the Armed Forces Pension Scheme, retirement planning, and where to find trusted support like the Armed Forces Pension Society.
Understanding Ex-Military Pensions
Military pensions are unique compared to civilian schemes. They are non-contributory — you don’t pay in directly, but your years of service build your entitlement. Your benefits will depend on:
– Which Armed Forces Pension Scheme you were on (AFPS 75, AFPS 05, AFPS 15).
– How long you served.
– Your rank and salary (final salary or career average, depending on scheme).
Key things to know:
• Your pension is linked to your service, not how much you paid in.
• There are different pension schemes — AFPS 75, AFPS 05, and AFPS 15.
• You may be able to claim an Armed Forces pension lump sum as part of your benefits.
Ex-Military Retirement Planning
Planning for life after the military isn’t just about your pension. You’ll need to think about:
• When you can claim your pension (including military early retirement pension options).
• How much income you’ll need to replace your salary.
• How tax on armed forces pension applies once you leave.
• Whether your family will be supported with benefits like the widow’s pension military UK.
Common Concerns About Military Pensions
Many veterans worry about:
• Am I entitled to Army pension benefits if I served only a few years?
• How much is my military pension worth compared to a civilian scheme?
• Can I access my pension early if I’m struggling financially?
These are real and valid questions. The good news: help is available through veterans’ UK Pensions Services, independent financial advisers, and online pension calculators. If you’re struggling to get your head around it all, the Forces Pension Society and the Royal British Legion offer pension and retirement advice for veterans.
Frequently Asked Questions
How does the Armed Forces Pension Scheme (AFPS) work?
The AFPS is a defined benefit scheme, meaning your pension is based on your final salary or career average earnings, plus years of service. You don’t make personal contributions—your service builds your entitlement.
What’s the difference between AFPS 75, AFPS 05, and AFPS 15?
- AFPS 75 (for those who joined before 6 April 2005): Final salary scheme with immediate benefits for many.
- AFPS 05 (joined 6 April 2005 – 31 March 2015): Career average scheme, with benefits paid later.
- AFPS 15 (joined after 1 April 2015, or transferred): Career average revalued earnings, with later pension age linked to state pension age.
Each has different rules on lump sums, retirement ages, and survivor benefits.
Can I claim my military pension early?
Yes, but it depends on your scheme and circumstances. Some members can access an early departure payment if they leave after a set number of years. Taking benefits early usually means reduced payments for life, so it’s worth getting professional advice.
How is my pension taxed after leaving the forces?
Once you leave service, your armed forces pension is treated like any other income. You’ll pay income tax on it based on your tax band, but no National Insurance. Your lump sum is tax-free.
What happens to my pension if I die—does my spouse receive it?
Yes. Most schemes include a widow’s pension (or survivor’s pension) for your spouse or civil partner. Dependent children may also qualify. The amount varies depending on your scheme and service record.