leaving before age 55
 

I did some sums for a Maj recently and he was over £35K (tax free) better off leaving just before age 55. If you are an FPS member, you can get a print out showing the figures in your personal circumstances. Forces Pension Society - Fighting for the Forces and their Families

Slight update on the SPVA forecast vs calculator. If you have been at a steady rate of pay the calculator just looks at your latest pay. For someone leaving during a pay freeze it is quite possible that an earlier block of 365 days, uplifted by inflation, received in the last 3 years of service, could be better.

Kintyred, ditto re FTRS! That's what I left. And yes to the index linking.

It's all in here, page 11 has a schematic:

http://www.veterans-uk.info/medical_...s05booklet.pdf

Definitely worth joining the Forces Pension Society for anyone unsure, or with dependants. They will also double check your pension income once you are in receipt of it to check it's correct. Here's their piece on the early departure - you'll need to be a member to read it in full:

Should You Retire at 55...or Just Before? - Forces Pension Society Pension Issues

Personal circumstances are what it is all about, one size does definitely not fit all. In my case leaving before 55 (on EDP 05) is a no-brainer given I have a job to go to. I think on balance EDP between the ages of 53-55 is the preferred option, if you ask MCM they will tell you this is the (current) case for PA spine people.

Absolutely - the earlier you leave the more you have to factor in loss of earnings for those last few years/months. Not a problem if you have a job or want to work. They say you will know when it is time to leave - I did.

It's also a bit of right place right time (at last!), since I missed out on FRIs due to age and really only switched to AFPS05 because (as we all thought) it was the best option if you intended to stay till the end. Having got there, it turned out to be even more lucrative to leave early.

How about inverse commutation? Another option open on AFPS05 - only appears to make sense if you live a very long time it seems.

Not sure what MCM is however?

BG, concur, MCM is Manning Career Management a Personnel centre outsourced to Billy Smarts Circus on behalf of the Army..

One consideration with the EDP option is, if the tax rules change, tax-free lump sums could become ...taxed :uhoh:.

OAP