1. What is the AFPS 05 Pension?

The Armed Forces Pension Scheme 2005 (AFPS 05) is a career average pension scheme for UK military personnel. It provides a pension based on pensionable earnings throughout the service career, with benefits revalued annually.

2. How Does the Calculator Work?

The calculator uses the AFPS 05 pension formula:

Where:

• \( PE \) — Pensionable Earnings (GBP)
• \( \frac{1}{69.75} \) — Accrual rate per year of service
• Years of Service — Total years served in the military

Explanation: The formula calculates the annual pension entitlement based on career average earnings and length of service under the AFPS 05 scheme.

3. Importance of Pension Calculation

Details: Accurate pension calculation is crucial for financial planning, retirement preparation, and understanding future income security for military personnel and their families.

4. Using the Calculator

Tips: Enter pensionable earnings in GBP and years of service. The calculator provides both annual and monthly pension amounts based on the AFPS 05 scheme rules.

5. Frequently Asked Questions (FAQ)

Q1: What is included in pensionable earnings?
A: Pensionable earnings typically include basic pay plus certain allowances, but exclude some elements like operational allowances.

Q2: How is the pension revalued?
A: Pension benefits are revalued annually in line with the Consumer Prices Index (CPI) to maintain their value against inflation.

Q3: When can I claim my AFPS 05 pension?
A: The normal pension age is 65, but early retirement options may be available depending on length of service.

Q4: Are there death benefits?
A: Yes, AFPS 05 provides death benefits including a lump sum and survivor pensions for eligible dependents.

Q5: Can I transfer my AFPS 05 pension?
A: Transfer options may be available but are subject to strict regulations and financial advice requirements.