Your armed forces pension explained: what you’re entitled to
If you’ve served in the UK armed forces, your pension is one of the most valuable parts of your total reward package. But with 3 major armed forces pension schemes in operation, it’s not always obvious which rules apply to you or how your benefits build over time.
Here’s a simple guide to the schemes to help you understand the benefits and make the most of what you’ve earned.
Time to read:
Understanding the armed forces pension schemes
There are 3 key armed forces pension schemes. These are:
1. AFPS 15: the current scheme
AFPS is a Career Average Revalued Earnings (CARE) scheme.
This means:
- each year, you build up pension equal to 1/47th of your pensionable earnings
- that annual slice is then revalued for inflation — so its value grows each year
- a tax-free lump sum isn’t automatic, but you can create one by giving up part of your annual pension (a process known as ‘commutation’)
2. AFPS 05
AFPS 05 is based on your final salary, not your average career pay.
This means:
- you earn 1/70th of your final pensionable salary for each year served
- your scheme includes an automatic tax-free lump sum at retirement
3. AFPS 75
Under AFPS 75:
- your scheme can pay up to 48.5% of your final pensionable salary for a full career
- you’ll also receive an automatic tax-free lump sum, often equivalent to 3 times your annual pension
What all the armed forces pension schemes have in common
Defined Benefit Security
All armed forces schemes are Defined Benefit (DB). That means your pension outcome isn’t tied to investments or market risks – you’re promised a guaranteed income for life.
No employee contributions
Unlike most pension schemes, AFPS members don’t pay in from their salary.
The Ministry of Defence covers the full cost, which makes this one of the most valuable public service pensions available.
Leaving early? Your options
Early Departure
If you’re a regular aged over 40 who has served for at least 18 years, you may qualify for:
- Early Departure Payment (EDP)
- A tax-free EDP lump sum
These payments bridge the gap until your main pension starts at your scheme’s normal pension age.
Deferred Pensions
If you leave before pension age but with enough service, you’ll get a:
- preserved (AFPS 75) or deferred (AFPS 05/15) pension, which is payable later in life, depending on the scheme’s rules
Your pension benefits
Annual pension
A guaranteed income for life, linked to inflation. This means it keeps its value over time.
Tax-free lump sum
Automatic under AFPS 75 and AFPS 05.
Optional (via commutation) under AFPS 15.
Many members use this lump sum to clear mortgages, invest or to fund their transition to civilian life.
Getting pension information
Get a free forecast
If you’re still in service
You can use the armed forces pension calculator or, for a more complete forecast, submit an AFPS Form 12 available on DefNet.
If you’ve left service
If you’ve left service but do not yet receive your pension, you can request a forecast online.
Alternatively, you can request a forecast by post.
If you are in receipt of your pension, contact Equiniti Paymaster.
This projection helps you understand what you’ve earned and how your career plans affect your benefits.
Get expert help
The Forces Pension Society (FPS) is an independent, not-for-profit membership organisation offering:
- personalised pension guidance
- help understanding scheme rules
- support with pension queries and challenges
Many armed forces families find FPS membership invaluable.
Why understanding your armed forces pension matters
Your armed forces pension is more than a retirement pot – it’s a lifelong financial foundation earned through service.
Understanding how your scheme works means you can make better decisions about your career, your transition and your future.
More detailed guidance on armed forces pensions, including other schemes, can be found online:
Organisations that can help
Many organisations can provide independent help and advice with your armed forces pension, from understanding your benefits to helping you with applications and processes.
The Forces Pension Society
The Forces Pension Society is a subscription-based, independent and not-for-profit organisation that:
- assists members in applying for their pensions
- gives guidance on Annual Allowance, Scheme Pays, Added Pension, Dependants’ Benefits and how to optimise pensions for tax-free capital or income
The White Ensign Association
The White Ensign Association have specialist consultants that can provide guidance to veterans of the Royal Navy, Royal Marines and their Reserves, as well as their families.
These regional consultants operate across the UK and can help through personal interviews, briefings and events at Royal Navy and Royal Marines establishments.
Need more options?
The GOV.UK veteran support directory allows you to search and filter organisations in one place. It’s a helpful tool for finding services that fit your situation.
Need to speak to someone about your pension?
If your pension is not in payment
Contact the Ministry of Defence:
Ministry of Defence
Telephone: 0800 085 3600 (overseas +44 141 224 3600)
Email: dbs-pensionshelp@dbspv.mod.uk
Ministry of Defence
Pensions Division
Mail Point 480
Kentigern House
65 Brown Street
Glasgow G2 8EX
If your pension is in payment
Contact Equiniti Paymaster:
Equiniti Paymaster
Telephone: 0345 121 2514
Email: veteransukpensions@equiniti.com
Equiniti Paymaster
Sutherland House
Russell Way
Crawley
RH10 1UH