Military Pension Calculator 2025/26
Project your armed forces pension at retirement, calculate your Early Departure Payment (EDP) lump sum and bridging income, and model commutation trade-offs. Covers AFPS 2015 and AFPS 2005 with verified MOD and Forces Pension Society data.
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How to Use This Calculator
My Forces Pension tab
Enter your annual pensionable salary (basic pay, excluding X-Factor and allowances), years of qualifying service, and select your pension scheme (AFPS 2015 or AFPS 2005). The calculator projects your annual and monthly pension at your Normal Pension Age (NPA), plus death-in-service benefits and EDP eligibility. The armed forces pension is non-contributory — you pay nothing.
Early Departure Payment tab
Calculate your EDP lump sum and monthly bridging income if you leave at age 40 or over with 20+ years of service. Enter your salary, service length, and age at departure. The calculator shows your tax-free lump sum, monthly EDP payments from leaving to NPA, and your full pension from NPA onwards. If you do not meet EDP criteria, it shows your Resettlement Grant entitlement (12+ years) or deferred pension.
Commutation tab
Model the trade-off between pension income and a tax-free lump sum. Enter your projected annual pension, the percentage you want to commute (up to 25%), and the commutation factor (~12:1). The calculator shows the lump sum you receive, your reduced pension, and a break-even analysis showing at what point keeping the full pension would have been better.
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The Formula
Armed forces pension benefits are calculated using the accrual rate for your scheme, applied to your pensionable earnings:
Annual Pension = Pensionable Pay × 1/47 × Years of Service
Revaluation: Average Weekly Earnings (AWE) applied each year while serving
Normal Pension Age: linked to State Pension Age (currently 67)
Employee contribution: 0% (non-contributory)
MOD employer rate: 73.5% of pensionable pay
AFPS 2005 (Final Salary, closed to new accrual):
Annual Pension = Final Salary × 1/70 × Years of Service
Automatic lump sum = 3 × Annual Pension
Normal Pension Age: 65
Early Departure Payment (EDP 15):
Eligibility: Age 40+ with 20+ years of qualifying service
Lump sum = 2.25 × Deferred Pension
Periodical payment = 34% + 0.85% per year over 20 × Deferred Pension
Paid monthly from leaving until NPA, then full pension begins
Commutation (tax-free lump sum):
Maximum: 25% of pension value
Lump sum = Pension Given Up × Commutation Factor (~12:1)
Break-even = Lump Sum ÷ Annual Pension Given Up
Death in Service:
Lump sum = 4 × Pensionable Pay (tax-free)
Spouse/partner pension = 62.5% of member's pension entitlement
AFPS 2015 uses career average earnings rather than final salary. Each year’s pensionable pay is banked and revalued by AWE, so your pension grows with national earnings. The McCloud remedy means members in service on or before 31 March 2012 can choose the better of AFPS 2005 or 2015 benefits for the period April 2015 to March 2022.
Example
Staff Sergeant earning £40,000 with 22 years in AFPS 2015, leaving at age 42
A Staff Sergeant earning £40,000/year has served 22 years in the regular Army. They are in AFPS 2015 and plan to leave at age 42. They want to know their pension projection, EDP entitlement, and commutation options.
Step 1: Projected pension at NPA 67
22 years at 1/47th: £18,723/year pension at NPA 67 (plus AWE revaluation each year while serving).
Step 2: Early Departure Payment at age 42
On leaving at 42: £42,128 tax-free lump sum plus £557/month bridging income until age 67, then full pension of £1,560/month.
Step 3: Commutation option
If commuting 25%: £56,170 tax-free lump sum, pension drops from £18,723 to £14,043/year. Break-even at age 79 — if you live past 79, keeping the full pension would have been better financially.