Pensions

[Gwyn Nicholas]

Can anyone tell me the current rate of Pension (pre tax) for a Warrant Officer 22 years aged 55. In fact it might be helpful for all ranks approaching 55 if someone has the information to hand. Thanks in anticipation.

[ap1]

Nick,
A supplementary question really. I would be interested in knowing in percentage terms how much your pension will increase to at 55. Based on the answer to your question.
I get told its about 2-3 fold increase.

[Gwyn Nicholas]

Al, last time I did a comparison with a guy I worked with, his increase worked out at around 2.2 but I'm not sure if that fluctuates depending on the percentage increase in pay reviews. I also only had the figures he gave me of the top of his head not from the paperwork so there is margin for error there.

Thanks Al and Bob

[ap1]

Al, last time I did a comparison with a guy I worked with, his increase worked out at around 2.2 but I'm not sure if that fluctuates depending on the percentage increase in pay reviews.

I think it does depend on pay increases, so you may benefit from the last few increases, as long as WO2's were included. The answer to your question should be interesting. I have 9yrs till 55, so it will give me a direction on how its increasing.

[Keith Jones 989]

Index linked increases in our pensions are very much related to the stock market. You will remember the heady days when 'With Profits' endowment policies were worth a lot of money at maturity - so that everybody could pay off the mortgage and still have lots left over? 'Fraid that our pensions, like those endowment policies, are subject to the now much lower rate of annual percentage increase.

I left the service in 1993 at age 45 with a pension (which I chose NOT to commute) approx GBPK10,400 and, like you guys, was looking forward to a mega increase 10 years later at 55 years. It actually came out at just less than GBPK1 per year! Be interested to know how other people got on.

The index linking increase at age 55 should not to be confused with those pensioners who resettlement commute (as opposed to lifetime commute) their pension on leaving the service. It was my understanding that when they get to 55 years their full pension will be reinstated (I believe this is where the myth about getting huge increases in pension at age 55 comes from - that is exactly what happened to a retired RCT WO1 who bought the house next door to me in Porthcawl. His monthly pension went up from some GBP300 to just under GBP1000 when he got to 55 - but he had commuted (and he did leave the Army some years before me)!).

Please read this with the proviso in mind that the information is 1993 vintage and might well have changed, like so much else in the Army has.

What you can all do, of course, is write to the pension office at any time, in your last 2 years of service, and ask them for a forecast.

[ap1]

I.

I left the service in 1993 at age 45 with a pension (which I chose NOT to commute) approx GBPK10,400 and, like you guys, was looking forward to a mega increase 10 years later at 55 years.

I did commute a portion of it, although not the full amount I was entitled to. Either way, I understand, that at 55, I should receive the same pension as a WO2 who leave at the 22yr point on the day I become eligible

[Keith Jones 989]

Got me there I'm afraid. Just had a look at all the paperwork leftover from my pension setting up days (scanned onto disk!) and nothing there about being equivalised (if there is such a word?) with anybody at age 55. Be interesting if somebody in the Pay Corps (AGC now, of course) could pick up on this thread - do we have any ex Pay Corps attached as members?

[Gwyn Nicholas]

AL, it arrived last month but I have been a bit busy. Better late than never eh? Wo2- 22 Years service full commutation. Pension before rise £453:25 Pension after rise at 55 yrs £826 ( both after Tax) Roughly a rise of 83%. I believe this fluctuates in line with the rate of pay rises in the interim period. (40-55) Hope this is of some help to you.

Note: I claimed my full Tax allowance against my pension.

[ap1]

Cheers Gwyn, thats a big help to the rest of us, as it gives us a percentage benchmark to work off.

Thanks again mate :-)

[nasher546]

AL, it arrived last month but I have been a bit busy. Better late than never eh? Wo2- 22 Years service full commutation. Pension before rise £453:25 Pension after rise at 55 yrs £826 ( both after Tax) Roughly a rise of 83%. I believe this fluctuates in line with the rate of pay rises in the interim period. (40-55) Hope this is of some help to you.

Note: I claimed my full Tax allowance against my pension.

Not far behind you Mucker!

[davidhuntley]

Hi Guys, I have just recieved my new pension increase,at age 55 October . It was not what i expected,I had no letter of confermation or what the increase would be, I spoke to the pensions office and they gave me no info at all, I only knew about what was happening when i recieved a bank statement.Can anyone tell me if i can claim any Tax back on my pension, cheers lads , stay safe.
NED

[ap1]

Hi Ned, without giving us all the personal detail, what was the percentage increase of your pension? In 2009 Gwyn's was 83%. I'd be interested in your % figure, 12 months later, in the midst of a recession?

Thanks

Al

[davidhuntley]

Hi Al,
Just dug the paperwork out i recieved in April, i will try and decode it.
AT age 55 last Oct my pension increase was just over a 3rd of the amount i was recieving,(hope that makes sense)
then in April this year my pension was increased by 3.1%, so that gave me an increase of just over £300 per annum wow.
hope this helps, speak soon, keep safe buddie
Ned

[ap1]

Understood, so your pre - 55 pension monthly amount, only increased by about 35% on your 55th birthday. Many thanks Ned.