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Future pension forecast

edited 30 November -1 at 1:00AM in UK Armed Forces MoneySaving
12 replies 9.7K views
Craig2909Craig2909 Forumite
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edited 30 November -1 at 1:00AM in UK Armed Forces MoneySaving
I retired nearly 5 years ago on the 75 scheme. 24yrs Army
My query is, is there as estimate of how much the pension is likely to go up by when I turn 55.
I.e by 50% as opposed to a figure as they're all different?

Also, do we get a lump sum also on the 75 scheme. My forecast from the mob never informed me of such but friends say that we also get a lump sum.

- These friends all have a different opinion to my first query - so not that reliable !!!

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  • gt568gt568 Forumite
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    Do you mean a lump sum at 55? If so, no you don't. Not on the 75 scheme.
    :silenced: Down with the signature fascists!!:naughty:
  • moleratmolerat Forumite
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    It would only be a guess as the increase is based on inflation so who knows where that is going. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/686424/Pensions_Increase_Multiplier_Tables_2018.xlsx will give you what the pension is worth now at full rate if you. I suppose you could backdate the appropriate number of years to get a ballpark figure. I set up a spreadsheet and forward increased it by 2% each year and corrected it as time went along.
  • SilvertabbySilvertabby Forumite
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    No, no further lump sum at 55 with AFPS75.

    Did you commute (ie, take a larger tax free lump sum in return for a smaller pension) when you retired? If so, then at 55 your pension will be restored to its pre-commutation value and then fully index linked.
  • Craig2909Craig2909 Forumite
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    Many thanks for the responses.
    No lump sum, can’t complain!
    I did commute the max, to get the most of the lump sum.
    I’ll try to do the spreadsheet idea to get an approx clue.
    I asked the FPS but their response was very vague!

    Thanks again

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  • edited 23 February 2019 at 2:47PM
    SilvertabbySilvertabby Forumite
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    edited 23 February 2019 at 2:47PM
    Craig2909 wrote: »
    Many thanks for the responses.
    No lump sum, can’t complain!
    I did commute the max, to get the most of the lump sum.
    I’ll try to do the spreadsheet idea to get an approx clue.
    I asked the FPS but their response was very vague!

    Thanks again

    FPS won't give you a quote because you are asking them to forecast future cost of living increases.

    If you uprate your (pre commutation) pension as at your date of leaving to today's date using molerat's link (then add on another 2.4% for April 2019) then what that will buy you today should, in theory, buy you at 55.

    The danger of adding on future increases now could over inflate your expectations - as you will be looking at that figure in relation to today's prices.
  • Craig2909Craig2909 Forumite
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    Thanks silver tabby.
    Please bear with me with this.
    So if I multiply by the figure in that link (mine was Oct 14) then do I add what ever inflation for 2015 , 16,17,18 then the 2.4 for apr 19 and carry that on each year?
    Sorry if it’s a daft simple question

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  • edited 23 February 2019 at 3:24PM
    SilvertabbySilvertabby Forumite
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    edited 23 February 2019 at 3:24PM
    No. look up your actual date of leaving on the table and use that multiplication factor to increase your pre-commutation pension to April 2018. Then add on 2.4% for April 2019.

    These tables are issued every year, but doesn't look like 2019 has been released yet.

    In your case, the factor will either be 1.0465 (if you left on or before 20 Oct 2014) or 1.0455 (if you left later in the month).

    So, using £10k as an example of a pre-commuted pension and a leaving date of 20 Oct 2014:

    £10k x 1.0465 = £10,465.00 plus 2.4% = £10,716.16 pension as at April 2019.
  • Craig2909Craig2909 Forumite
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    Many thanks, that makes perfect sense.
    I’ll have a look on you gov to try and find the page for when the table is released.
    Thanks again

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  • I commuted the maximum amount when I left the RN in 2005. The pension increased by around 80% when I reached age 55. Just to give you an idea.
  • Craig2909Craig2909 Forumite
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    Many thanks shipwreck, that’s quite a hefty rise. Hope you enjoy it mate

    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam

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