Pension increase multiplier

Craig2909

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/686424/Pensions_Increase_Multiplier_Tables_2018.xlsx 

Hi all
Whilst waiting for a forecast, I thought I'd try and work it out myself but I do not know where to find the latest multiplier table, does anyone know where/how to find the latest tables please?

many thanks

Merlin139

https://www.gov.uk/government/publications/public-service-pensions-increase-2022

Craig2909

Merlin139 said:

https://www.gov.uk/government/publications/public-service-pensions-increase-2022

Thank you very much. Looking at how old some of the threads are I was doubtful of a response let alone one within a few minutes !

Thanks again, warmest wishes

Merlin139

Craig2909 said:

Merlin139 said:

https://www.gov.uk/government/publications/public-service-pensions-increase-2022

Thank you very much. Looking at how old some of the threads are I was doubtful of a response let alone one within a few minutes !

Thanks again, warmest wishes

Just happened to be looking at something else and saw the question pop up. It helps that I was RAPC/AGC for my 24 years so easy for me to answer.

Craig2909

@Merlin139

To give an idea of the value at age of 55 I was advised a few years ago as a very simple rule of thumb to then multiply by 2.4% (very rough) - would you agree?

Merlin139

@Craig2909

Take the figure you were awarded before commutation and times that by the figure for the period when you left. 

Say you left  between 22 June to 21 July 2014 You would multiply the figure by 1.1326

Example £15k X 1.1326 = £16989

Just seen previous thread and Oct 2014 is mentioned so the figure will be 1.1293 or 1.1282 depending on exact date.

At the moment we are looking at 10.1% increase next year. (Providing the Government does not move the goal posts) 

Craig2909

OK thanks, think I have it.
On my last thread I thought it meant you'd do this every year, which is a hefty number, so I know is in correct. 

So is this the equation?
I left 23 Oct 14 -  So I would multiple my pre-commutation amount by  1.1270 and then + the inflation rise prior to my 55th year

If so, then this makes sense as to why you just don't know what it will be.

So in real terms, those about to turn 55 will benefit from the current state of affairs.
Whereas if the economy was doing well and the inflation rate was low just before you turn 55, you could dip out.

Or am I still way off? so if its obvious and I'm just not getting it !!!

Merlin139

The only way you really gain is if Pension increases are above inflation but that does not happen. Increase pegged at September CPI rate and increased rate paid from the following April. 

If inflation had been higher for the last 10 years Pension rates would have increased but the real value would probably have decreased. If we have negative inflation Government pensions don't go up but also don't go down, so we would actually gain.  

23 October 2014 would give a rate of 1.1282 

You can say that the figure you get from Amount awarded multiplied by 1.1282 = Y and then multiply Y by 10.1% for next year will give you the rates from April 2023. April 2022 tables were published in 20 Jan 2022 so would suspect 2023 rates to be published around the same time. 

Effectively I have done the calculation for my increase based on figure being paid multiplied by 10.1% I have done this the last couple of years and its been confirmed by the new rate tables.

Having a father in the services who left in 1975 after 22 years I was able to see the increase he got in 1990. His figure went up 410%
When he passed a few years ago it was nearly 10 times what he had been awarded but in real terms it was probably worth less.

To him though it was worth far more as it was just extra spending money. Also my mother gets 50% of his pension because thankfully he made a decision when he left to pay to increase the amount payable to surviving spouses from 1/3rd to 1/2 (not applicable now)