AFPS Pension Estimator (UK)
Estimate your annual military pension, monthly income, and tax-free lump sum under AFPS 75, AFPS 05, or AFPS 15. This is an educational estimate, not an official pension forecast.
For AFPS 05/15, this assumes £12 lump sum for each £1 annual pension commuted.
How this armed forces pension scheme calculator works
This calculator gives a practical estimate of your likely pension outcome using a simplified model of the UK armed forces pension schemes. It is useful if you want a fast pension forecast before requesting an official statement.
It estimates:
- Projected pensionable pay at retirement
- Annual pension before and after age adjustment
- Monthly pension income
- Tax-free lump sum (automatic and/or commuted)
What each input means
Scheme type
Select AFPS 75, AFPS 05, or AFPS 15. Each scheme has different accrual rules and retirement age assumptions.
Current age and draw age
The calculator estimates whether you are drawing your pension earlier or later than the scheme normal pension age. It then applies a simple adjustment factor.
Total reckonable service
Enter your expected total service by retirement (not just service completed so far). This directly affects the size of your pension.
Pensionable pay and growth
For AFPS 75 and AFPS 05, final salary matters. The tool projects your pay using your annual growth assumption. For AFPS 15, it uses an approximate career-average earnings approach.
Commutation
Commutation means exchanging part of annual pension for a larger tax-free lump sum. This can support debt clearance or one-time costs, but it reduces yearly pension income for life.
Scheme assumptions used in this calculator
- AFPS 75: pension accrual of 1/80 of final pay per service year, plus automatic lump sum of 3x pension.
- AFPS 05: pension accrual of 1/70 of final pay per service year, no automatic lump sum included here.
- AFPS 15: pension accrual approximation of 1/47 of career-average pay, with optional CPI-style uplift assumption.
- Early/Late payment adjustment: simplified model (not an official actuarial factor table).
How to use this pension estimate wisely
A pension calculator is strongest when used for comparison, not certainty. Try running several scenarios:
- Conservative pay growth (1% to 2%)
- Higher inflation/cost-of-living assumptions
- Different draw ages (e.g., 60 vs 65)
- Commutation at 0%, 10%, and 25%
When you compare scenarios side by side, you can see which levers most affect lifetime retirement income.
Planning tips for military pension outcomes
1) Build a bridge income plan
If you leave service before your pension is payable, bridge savings can reduce pressure and avoid costly early withdrawals from investments.
2) Pair pension with ISA and emergency cash
Many service personnel benefit from balancing long-term pension value with liquid savings and tax-efficient ISA investing.
3) Recheck your forecast annually
Promotions, allowances, and changing retirement dates can materially alter outcomes. A yearly pension check keeps your plan realistic.
Important disclaimer
This armed forces pension scheme calculator is for educational use only and does not replace formal pension advice, official MOD forecasts, or regulated financial planning. For decisions involving commutation, divorce, tax, ill-health retirement, or dependants' benefits, seek professional advice and your official scheme documentation.