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UK Military Pension Formula:
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The UK Military Pension Calculator estimates pension benefits for armed forces personnel based on the Career Average Revalued Earnings (CARE) scheme. It calculates annual pension amounts using pensionable earnings accumulated over years of service.
The calculator uses the UK military pension formula:
Where:
Explanation: Each year's pensionable earnings are divided by 47 to calculate that year's pension accrual. The total pension is the sum of all annual accruals over the career.
Details: Accurate pension calculation is essential for retirement planning, financial security assessment, and understanding the long-term benefits of military service. The CARE scheme provides a predictable pension based on career-average earnings.
Tips: Enter the number of years of service first, then input pensionable earnings for each year in GBP. Ensure all values are positive and realistic for accurate results.
Q1: What is the accrual rate of 1/47?
A: This means for every £47 of pensionable earnings, you accrue £1 of annual pension. It represents a 1/47th accrual rate per year of service.
Q2: Are pensionable earnings the same as basic salary?
A: Pensionable earnings typically include basic salary plus certain allowances, but may exclude some special payments. Check specific scheme rules for exact inclusions.
Q3: How does revaluation work in the CARE scheme?
A: Previous years' pension accruals are revalued annually in line with inflation (CPI) to maintain their value until retirement.
Q4: What is the normal pension age for UK military?
A: The normal pension age is typically 60, but this can vary depending on the specific pension scheme and date of joining.
Q5: Can I take my pension early?
A: Early retirement may be possible but usually results in actuarial reduction to account for longer payment period. Consult with pension administrators for specific options.