any online RPI calculators?

wardrobe · 18 April 2009 at 10:13PM

dug out an Armed Forces pension forecast i have from 1998, which i will have:

terminal grant of £4145.16
Preserved pension of £1381.72pa

it says it Index linked measured by RPI.

are there any online calculators so i can see how the figures have changed since 1998?

Im going to contact the pensions folks this week to let them know i've changed address and see if i can get a forecast but out of interest it would be interesting to the figure online.

Cheers!

jamesd · 19 April 2009 at 12:15AM

One of the many places you can find the RPI index values is the ONS

The index value in Dec 1998 was 164.4 and in Feb 2009 it was 211.4 so you can expect at least:

214.4 / 164.4 * 4145.16 = 5405.85
214.4 / 164.4 * 1381.73 = 1801.95

They will be a little higher if the figure you have for 1998 is for an earlier point in that year, a little lower if it's for April 1999 as the end of the 1998/9 tax year..

SnowMan · 19 April 2009 at 10:11AM

The precise application of increases will depend on the scheme rules for the scheme you were in but normally schemes like the Armed Forces (also LGPS and NHS) use the RPI index. They usually apply increases in April each year based on the RPI for the previous September.

The annual RPI increases can be found here you need to look at the column for September and the table at the top (i.e the RPI one and not the CPI one).

e.g. in April 2009 the increase that should have been applied is 5% (i.e Sept 2008 figure). The increases apply up to your scheme retirement date (is it AFPS75 you were in and so 60 here?)

After scheme retirement date they may only apply to the excess of the pension over what is called your GMP.

The first increase after leaving is sometimes a proportionate one (but sometimes it is a full one). For example if you left in October 86 the first increase in deferment in April 87 might be for half a year.

Have a look at your 98 statement and try and work out what increases have been applied so far. Usually these types of public sector scheme statements make no allowance for increases after the statement date. If it was produced in (say) February 98 then it may include increases up to and including April 97. You may also have figures at date of leaving the scheme and you can try and marry these up by applying the annual increases for each April between leaving and the 98 statement date.

Hope this helps.

Pixieboy · 19 April 2009 at 1:58PM

The excel workbook at the bottom of this page should help http://www.hm-treasury.gov.uk/tax_pensions_increases.htm you need to know thge date that the pension "began" this is normally the day after your last day of pensionable employment.
Hope this helps.

wardrobe · 20 April 2009 at 4:48PM

manythanks everyone for the information and your time

any online RPI calculators?

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