The new calculator is out on trial
The new pensions calculator is out on trial - had a very unofficial play with it today. It looks similar to the current calculator right the way up to the final screen when it suddenly gets complicated as it gives you a break down of what you get from the various schemes.
The AFPS 15 payments are classed as EDP & EDP lump sum in a way that is similar to the AFPS 05 scheme.
But what about the numbers I hear you cry? Well, it was only a quick play, so I may have misunderstood or made a mistake, but the initial indications are that those of us fortunate enough to bank an AFPS 75 pension before change over will be better off in the long run.
Assuming I don't get promoted again and leave as a sqn ldr in 2030, I would currently get around 26.8k / yr and a 80.5k lump sum on the 75 scheme.
On the new scheme, when I leave at 55 (2030) I get 16.5k pension and 49.5k lump sum from my 75 scheme PLUS an 8.5k EDP and 42.9k EDP lump sum giving a total pay out at 55 of 25k 'pension' and a 92,4k lump sum - more if you opt for commutation.
When I hit 60, the AFPS 15 deferred pension appears to kick in with a total defered pension of 19.1k. Given that includes the 8.5k initial EDP at 55, I reckon that is an uplift of around 10.6k at 60. If I'm correct, then the combined 75/15 scheme means the following to me:
Leave RAF at 55 - total annual payment c. 25k (-1.8k on 75 scheme for 5 years)
AFPS 15 kicks in at 60 - total annual payment c 35.6k (+10K on 75 scheme from 60)
State pension kicks in at 67 .... if you believe the govt!
In summary, initial indications appear to show that there may well be some of us, albeit a minority, are better off by clinging on to the bitter end as a result of banking the 75 pension before change over and then accruing a new scheme at a 1/47 accrual rate on a relatively high 'starting' salary. I think, and I stress the word think, the new scheme might give me a total pension as a sqn ldr from 60 onwards that is closer to the pension that I might expect as a wg cdr on the 75 scheme.
I do hope I've got it right and I don't review it tomorrow and the numbers suddenly look worse!
Last edited by Melchett01; 16th May 2013 at 22:51.