FTRS Pension after age 55

[Corporal Clott]

I've been looking at FTRS pensions. I thought that the pension would only be payable at age 60, but having run the Armed Forces Pension Calculator it seems I can draw my pension from age 55 at a reduced rate:

If you are an RFPS member who qualifies for a deferred pension and lump sum payable at age 65 (including an accrued right to RFPS deferred pension following the AFPS15 transition) you may claim payment from age 55 onwards. If you choose this option, your pension and lump sum will be adjusted from the amount that would normally have been payable from age 65 using the appropriate actuarial early retirement reduction factor for your age as at the calculation date.

If you are an AFPS15 member with deferred pension payable at State Pension Age (including accrued rights members with deferred pension payable at an earlier age) you may claim actuarially reduced early payment of your AFPS15 benefits from age 55 onwards. If you choose this option, your pension and lump sum will be adjusted from the amount that would normally have been payable at State Pension Age using an appropriate actuarial early retirement reduction factor for your age as at the calculation date.

I've just run the figures and due to the accrual rate of AFPS15, it would appear that I am better off in pension terms going FTRS in my last 15 years than staying in the Regulars (even if I drop one rank!). Is this right?

CPL Clott

[Voxpop]

If you are a FPS member send your details to David or Anthony ([email protected]) and they will give you the facts and implications. www.forcespensionsociety.org

[Pontius Navigator]

Would your FTRS be a long term contract or could it be terminated? 15 years is a long time in the RAF.

You would gain in flexibility and the chance to jump ship on your terms.

[Corporal Clott]

PN sorry iPhone typo. I have 11 years to go until 60. I reckon I'm better off going to 60 in FTRS than I would be in the Regulars as my accrual rate is faster than on AFPS75.

Vox - £37/yr is too much for a little advice. Sorry.

CPL Clott

[Onceapilot]

I have 11 years to go until 60. I reckon I'm better off going to 60 in FTRS than I would be in the Regulars as my accruel rate is faster than on AFPS75.

I would just be careful that you don't leave yourself more vulnerable in case of sickness/illness on FTRS. Your 50's can reveal many physical problems and, I think you may be better placed as a regular if something occurred. How would you stand if say, you became unfit for service at age 55 as FTRS?

OAP

[Corporal Clott]

Here are the sums:

Stay to 60 as a Regular on AFPS75 and get £29k pension £87k lump sum

Leave and get £23k pension £69k lump immediately go FTRS and then at 60 get a further £12k (or £8k pension plus £51k lump sum). So get an extra £6k of pension, or get an extra £2k pension plus an extra £33k lump sum. If I leave at 58yrs I woukd get £7k added to my pension making me £1k a year better off and retiring 2 years earlier. FTRS still get a disability pension if the injury is Service attributable.

What am I missing? Or for once is there a good deal to be had?

CPL Clott

[Pontius Navigator]

Is Service assured to 60?

Would FTRS be available in 6 years time?

Is FTRS assured for next 11 years.

Have you factored in the pension claw back to keep FTRS pay plus pension to your full time pay level? I think that rule still applies.

The FPS isn't £37/yr. Join, get advice, leave.

I had an offer to join FPS or similar, they argued how a brigadier would be disadvantaged. I wrote to them and got a very good reply from a 2* who accepted that junior officers would have little sympathy. I didn't join ☺