Originally Posted by
BEagle
3.75% for those still serving seems pretty miserly.
Whereas according to the CTP website, Armed Forces pensions, once awarded, are adjusted in April each year by the Consumer Price Index (CPI). The CPI rate used is the CPI headline rate for the September prior to the April adjustment the following year. This rate is formally announced in October each year.
But with CPI at around 9.4%, do we really anticipate the government holding to this agreement? Perhaps encouraging is the announcement that, for the State Pension, the 'triple lock' will be applied for 2023....meaning a rise in accordance with inflation.
I remember reading somewhere that there was a capped maximum rise for UK Armed Forces Pensions regardless of the CPI the previous September. I thought it was 5% but I just checked back and found I got 5.2% in 2011 so if there is a cap it's higher.