We have always had a real focus on supporting those in the Armed Forces as they approach critical points in their career, so here we offer the following pension tips, along with links to articles and guides, for those in the transition process.
Plan the timing of your retirement from the Armed Forces (if you can). We are often asked if there is a ‘best time’ to leave the Armed Forces. The answer is ‘yes’ – find out more here.
Find out if you’re due a Resettlement Grant, which is a one off lump sum payment (currently) *£12,692 to help you transition to civilan life. You will need to have served as a Regular, and not entitled to an Early Departure Payment (EDP), ill-health award or an immediate pension. If you receive a RG, you will still be eligible to receive a deferred/preserved pension when you reach age 65/State Pension Age. Also a good idea to Know your lump sums!
Head to the MoD online calculator and to get a good idea of your pension benefits, and don’t forget to apply for an annual forecast of benefits on AFPS Form 12 from Veterans UK.
Complete your AFPS Form 1 Correctly!
Completing the pension application form towards the end of service is one of the most important pieces of discharge administration a service leaver will need to complete, particularly if you are going to receive immediate pension benefits. Many of our members consult us when completing their Pen Form 1, in fact we encourage it. A simple 5-10 minute telephone call to our enquiry service means that you can complete the form under the guidance of one of our consultants. Read a little more here on errors to avoid when completing Pen Form 1.
Attend a Financial Aspects of Resettlement Briefing. Thousands leave the Armed Forces every year and far too many do not attend this briefing. Run by the CTP but delivered by The Forces Pension Society, it is essential for anyone leaving the Armed Forces, and aims to help Service personnel better understand their Armed Forces Pension. Pension topics coverd are: An overview of each pension scheme; Pen Form 1 completion; Commutation; EDP; Medical awards; Living abroad and more. Check upcoming dates here.
Remember YOU must claim your Armed Forces Pension. It will not be paid automatically. To claim for a preserved/deferred pension use AFPS Form 8
Know your state pension. You need to be aware at what age you are going to receive it and how much it is: make sure you have contributed enough NI to achieve the maximum, as some of your service time may not count fully. You can check yours here.
Keep an eye out for any changes to Pension Taxation rules (applicable to all). This handy video from MoD briefly explains the rules
Finally in the words of our Chief Executive, Neil Marshall…
“Do the Maths. Your financial situation is unique, like your Armed Forces Pension. It’s highly likely that your pension will be the foundation on which your financial future is based.”
*Figures correct at time of writing
