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AFPS 15 Pension Formula:
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The Armed Forces Pension Scheme 2015 (AFPS 15) is a career average revalued earnings (CARE) pension scheme for UK armed forces personnel. It provides a pension based on 1/47th of pensionable earnings each year, which accumulates over the service period.
The calculator uses the AFPS 15 pension formula:
Where:
Explanation: Each year, 1/47th of your pensionable earnings is added to your pension pot. The total pension is the sum of all annual contributions over your service period.
Details: Proper pension planning ensures financial security after service. Understanding your AFPS 15 benefits helps in retirement planning and making informed career decisions.
Tips: Enter the number of years of service, then input your pensionable earnings for each year. All earnings should be in GBP. The calculator will sum 1/47th of each year's earnings to provide your total annual pension.
Q1: What counts as pensionable earnings?
A: Pensionable earnings typically include basic pay, plus any additional allowances that count toward pension calculations under AFPS 15 rules.
Q2: How is the pension paid out?
A: The pension is paid annually from retirement age, based on the accumulated total from all years of service.
Q3: Can I take a lump sum?
A: AFPS 15 may offer commutation options where you can exchange part of your annual pension for a tax-free lump sum at retirement.
Q4: What happens if I leave service early?
A: If you leave before completing minimum service requirements, you may be entitled to a deferred pension or transfer value.
Q5: Are there annual increases to the pension?
A: Yes, pensions in payment are typically increased annually in line with inflation (CPI) to maintain purchasing power.