Timecodes: 0:00 Intro 1:28 Initial Thoughts 3:50 Why The Pension Scheme Changed 4:51 What Is The Armed Forces Pension Scheme 2015 (AFPS15) 8:38 Am I a Member of the AFPS15? 9:29 How much time do I need to serve to be eligible for the AFPS15? 10:27 When does the AFPS15 become payable? 12:08 How do I claim the AFPS15? 13:11 How is the AFPS15 calculated? 20:17 What is the Early Departure Payment (EDP)? 24:52 What is the Resettlement Grant? 25:33 How to create a lump sum with the AFPS15 via Commutation? 26:46 Can I contribute towards my AFPS15 (Added Pension)? 28:17 Final Thoughts 29:37 Outro
This video should be compulsory viewing for all Divisional/Regimental meetings for the RN/RM (and equivalent for Army/RAF). I'm sure it would aid retention as so few properly understand just how good the AFPS15 actually is. Best explanation of it all I've ever seen, and I've been subjected to many, many compulsory briefings in the past and come away none the wiser!
What an excellent video, those serving are extremely lucky to have you as a resource to tap into For context, i am a veteran on the 75 scheme currently drawing my pension. You are right to point out that just like the 75 scheme, the 15 scheme is the gold plated of its peers and time. As an example, i am currently paying into my company DB pension at 14% of my pensionable pay to get matched contribution of 14% and this pension is considered one of the best in the private sector. While 15 may not feel as generouse as what has gone before it certainly is right up there when carpared to other current offerings. Keep up the good work, keep the troops informed because i wish i knew somebody like you in my day. Your vids are great, and even keep an old fool like me up to date to the point you had me give up 30 minutes of my time, thank you
One thing i just learned from your video mate is that if you claim your pension at 55 your EDP still carries on until SPA, well done mate seriously. Genuinely I thought the EDP would stop
Great video and channel. Mentioning the (quite rightly) low likelihood of serving to 60 and receiving an immediate pension. But is it true if you leave the regulars and (within 5 years) join a unit as a PTVR and serve to 60 that your whole AFPS15 pension is paid out?
Question: If you take the Early Payment Pension With Actuarial Reduction i.e. get your AFPS paid before SPA, can you create a Tax-free Lump Sum from it? I know you can do it at SPA, but the booklet is not clear for any period beforehand. It states for every £1 given up in pension, you can create £12 in lump sum. Thoughts?
Fantastic video, I've been passing it around to my muckers like a... Can you make a video about volunteering for redundancy, the benefits, and disadvantages? The Armed Forces Redundancy Scheme 2010 (AFRS 2010). I've read through it, but the MoD often speaks in an alternative language and I need a translator.
Comparative to other workplace pensions today, AFPS 15 and also AFPS05/15 are still a good deal. They're just *not as good* of a deal in some ways as AFPS75 or AFPS75/15, because of how the benefits are accrued over time and when they apply due to the increased retirement age. This has to do with increased life expectancy and how long it takes to reach salary average "plateaus". Essentially, the later you get your money, and the less you can claim if leaving earlier, the more money the pensions pot can save to the taxpayer over time. Early leavers, less being drawn and comparatively early deaths in a physically active subsector of the British population = "kaching" for the treasury. 4:22 is the slide that tells the whole story. £4Bn on pensions alone is what this all about. Example - my calculation shows if I go outside after 20/40 EDP point and electing for AFPS15, I get less lump and less EDP, until SPA when the amount jumps up 2 grand more than if I elect for AFPS 75, which is more lump sum and more EDP, right away but less money at SPA. My point being, I might not even make it to 68, so I may as well take the money now while I can bloody use it! And I am old btw and and an officer. BZ for the brief though.
Fantastic informative video! Thanks mate, will be sharing this, first time in 17 years I’ve even had a slight understanding of my pension outside of cookhouse gen
Fairly accurate that, I left with 22yrs 75 scheme and 3yrs on the 15 scheme and the value for the 15 scheme on exit was £2142 so I have years worth of Cpi to go before its paid out. A nice addition to the state pension once I get there.
Great video as always. I have completed 14 years and plan to complete 24 years. When do I need to confirm when i wish to move from 05 to 15 scheme?? Some people i know have received letters requesting them to decide, but i haven't, and i don't want to miss the boat.
Many thanks, glad you found it useful. Because you are still serving and have a while left, you are at the bottom of the priority list for receiving your RSS. If I remember correctly, they have until 2025 to get them all out. Hopefully by the end of this year you'll see it. But you'll make the decision when you leave. I have a whole video on the 2015 Remedy which can help if you haven't already watched it.
Thank you. I have learned so many this things from this video. Most of my mates don’t know about it and I have asked couple of seniors and clerks, but they could not still provide the full brief information. We don’t have this kind of brief in our regiment. We do have other kind kind of brief which are not worth like this. I am going to spread this information across my regiment. Also where do I find all the information regarding the pension, armed forces benefits. I am watching most of videos everyday.😊 Thank you 🙏🏽 for your hard work.
Glad you've found it useful and yes, please do share around. Not enough people understand their pension. As for more information, I link all the sources I use in the description of my videos.
What an excellent, informative and easy to understand video. Of all the briefs I’ve had regarding pensions none were as easy to understand as this video. I’m currently in the MPGS and hopeful of serving until I’m 60, which is a viable option and one I would recommend to people looking to receive their pension at 60.
Another great video! Confirmation - you can request payment of a AFPS15 deferred pension early, at a reduced rate AND still receive the EDP to SPA? Where is this written?
Thanks. I've not seen it specifically written anywhere but I've heard the Forces Pension Society say it a number of times on their pension breifs. It also doesn't say anywhere that it stops if you claim the pension early at 55, which I'm pretty sure it would if that was the case.
Learning about EDP through your other video honestly changed my career intentions. A bit of a pension trap, but ultimately not a bad deal. My only concern is by the time I get to EDP they’ll have cancelled it!
They won't cancel it, at least not under the AFPS15.. Certainly, pension changes in the future could happen. I think people would be naive to suggest it won't ever change again. But if they do, then just like in the past, pension rights on previously accrued schemes will be protected.
It is a very poor pension and it can't be fixed in the minds of the soldiers. It is bad, it is poor, and it is sickening to see our projection. I can give many reasons why it is poor
Poor relative to what?? NHS is regarded as a decent pension and staff pay between about 6-13% from their wages into it and accrue at a career average rate of 1/54th. I'd therefore argue that a pension that you pay nothing at all in to and which accrues at a higher rate of 1/47 is pretty damned good! Is it as good as legacy schemes designed? No, but they were based off shorter life expectancies and are unaffordable unless the UK discovers the world's biggest natural hydrogen reserves!!!
Yes but you'll need to make your CO aware you have other employment and if it becomes a hinderance to your main job then you'll have to stop. You'll also be responsible for declaring and paying the extra tax from any income you earn.
Absolute top-notch video. So much info on it that nobody talks about. Done 25 Yrs, snco and still going strong. Few more years till retirement. Thanks a lot.
I did 3 years consecutive in the reserves on an ADC after 13 years regular - I’m now rejoining the regular to finish my career, mainly, for the pension!
Timecodes:
0:00 Intro
1:28 Initial Thoughts
3:50 Why The Pension Scheme Changed
4:51 What Is The Armed Forces Pension Scheme 2015 (AFPS15)
8:38 Am I a Member of the AFPS15?
9:29 How much time do I need to serve to be eligible for the AFPS15?
10:27 When does the AFPS15 become payable?
12:08 How do I claim the AFPS15?
13:11 How is the AFPS15 calculated?
20:17 What is the Early Departure Payment (EDP)?
24:52 What is the Resettlement Grant?
25:33 How to create a lump sum with the AFPS15 via Commutation?
26:46 Can I contribute towards my AFPS15 (Added Pension)?
28:17 Final Thoughts
29:37 Outro
You are doing a fantastic service for the blokes here mate. Thankyou.
Thank you, much appreciated.
This video should be compulsory viewing for all Divisional/Regimental meetings for the RN/RM (and equivalent for Army/RAF). I'm sure it would aid retention as so few properly understand just how good the AFPS15 actually is. Best explanation of it all I've ever seen, and I've been subjected to many, many compulsory briefings in the past and come away none the wiser!
Many thanks for the kind words and support. I agree, it should be shared with everyone, albeit I'm a bit biased haha
Fantastic video. 13 years service and first time I've understood AFPS15..
Thanks, happy to hear it's helped you out.
What an excellent video, those serving are extremely lucky to have you as a resource to tap into
For context, i am a veteran on the 75 scheme currently drawing my pension. You are right to point out that just like the 75 scheme, the 15 scheme is the gold plated of its peers and time.
As an example, i am currently paying into my company DB pension at 14% of my pensionable pay to get matched contribution of 14% and this pension is considered one of the best in the private sector. While 15 may not feel as generouse as what has gone before it certainly is right up there when carpared to other current offerings.
Keep up the good work, keep the troops informed because i wish i knew somebody like you in my day.
Your vids are great, and even keep an old fool like me up to date to the point you had me give up 30 minutes of my time, thank you
Thanks for the kind words and for sharing that additional context of your current situation. Greatly appreciate it.
One thing i just learned from your video mate is that if you claim your pension at 55 your EDP still carries on until SPA, well done mate seriously. Genuinely I thought the EDP would stop
To be fair I learnt that a while back from sitting in on a Forces Pension Society brief. Certainly not well known.
Great video and channel. Mentioning the (quite rightly) low likelihood of serving to 60 and receiving an immediate pension. But is it true if you leave the regulars and (within 5 years) join a unit as a PTVR and serve to 60 that your whole AFPS15 pension is paid out?
Question: If you take the Early Payment Pension With
Actuarial Reduction i.e. get your AFPS paid before SPA, can you create a Tax-free Lump Sum from it? I know you can do it at SPA, but the booklet is not clear for any period beforehand. It states for every £1 given up in pension, you can create £12 in lump sum. Thoughts?
Wages have never tracked prices so you can't say that your pension retains its purchasing power whilst linked to the AWE
Fantastic video, I've been passing it around to my muckers like a... Can you make a video about volunteering for redundancy, the benefits, and disadvantages? The Armed Forces Redundancy Scheme 2010 (AFRS 2010). I've read through it, but the MoD often speaks in an alternative language and I need a translator.
Thanks, appreciate it. That's certainly something I can look into in the future, I'll add it to my list.
Comparative to other workplace pensions today, AFPS 15 and also AFPS05/15 are still a good deal. They're just *not as good* of a deal in some ways as AFPS75 or AFPS75/15, because of how the benefits are accrued over time and when they apply due to the increased retirement age. This has to do with increased life expectancy and how long it takes to reach salary average "plateaus". Essentially, the later you get your money, and the less you can claim if leaving earlier, the more money the pensions pot can save to the taxpayer over time. Early leavers, less being drawn and comparatively early deaths in a physically active subsector of the British population = "kaching" for the treasury. 4:22 is the slide that tells the whole story. £4Bn on pensions alone is what this all about. Example - my calculation shows if I go outside after 20/40 EDP point and electing for AFPS15, I get less lump and less EDP, until SPA when the amount jumps up 2 grand more than if I elect for AFPS 75, which is more lump sum and more EDP, right away but less money at SPA. My point being, I might not even make it to 68, so I may as well take the money now while I can bloody use it! And I am old btw and and an officer. BZ for the brief though.
Thanks mate really appreciate this
Glad it helped
Fantastic informative video! Thanks mate, will be sharing this, first time in 17 years I’ve even had a slight understanding of my pension outside of cookhouse gen
No dramas, glad it's been of value
I did 7 years from 88 to 95 i tried the pension calculator but I wasn't sure whether I was understanding it right. (Typical grunt not very smart)
What is a duty member who dies before retirement? How is the the fund disbursed?
I'll be doing a video in the future on death benefits which will answer that
@@thesavvysquaddie thank you
10:20 that comment is very telling - ‘getting caught’ rather than ‘doing drugs’.
Find the 20/40 policy outrageous. A lot of people joking young and get effectively punished for doing so.
Fairly accurate that, I left with 22yrs 75 scheme and 3yrs on the 15 scheme and the value for the 15 scheme on exit was £2142 so I have years worth of Cpi to go before its paid out. A nice addition to the state pension once I get there.
Great video as always. I have completed 14 years and plan to complete 24 years. When do I need to confirm when i wish to move from 05 to 15 scheme?? Some people i know have received letters requesting them to decide, but i haven't, and i don't want to miss the boat.
Many thanks, glad you found it useful. Because you are still serving and have a while left, you are at the bottom of the priority list for receiving your RSS. If I remember correctly, they have until 2025 to get them all out.
Hopefully by the end of this year you'll see it. But you'll make the decision when you leave. I have a whole video on the 2015 Remedy which can help if you haven't already watched it.
Thank you. I have learned so many this things from this video. Most of my mates don’t know about it and I have asked couple of seniors and clerks, but they could not still provide the full brief information. We don’t have this kind of brief in our regiment. We do have other kind kind of brief which are not worth like this. I am going to spread this information across my regiment. Also where do I find all the information regarding the pension, armed forces benefits. I am watching most of videos everyday.😊 Thank you 🙏🏽 for your hard work.
Glad you've found it useful and yes, please do share around. Not enough people understand their pension.
As for more information, I link all the sources I use in the description of my videos.
Cheers mate!!!
You're welcome.
I've even played it to the section today. All are now a lot wiser in the grand scheme of this pension.
What an excellent, informative and easy to understand video. Of all the briefs I’ve had regarding pensions none were as easy to understand as this video. I’m currently in the MPGS and hopeful of serving until I’m 60, which is a viable option and one I would recommend to people looking to receive their pension at 60.
Thanks for the kind words and glad the video helped you.
Another great video! Confirmation - you can request payment of a AFPS15 deferred pension early, at a reduced rate AND still receive the EDP to SPA? Where is this written?
Thanks. I've not seen it specifically written anywhere but I've heard the Forces Pension Society say it a number of times on their pension breifs. It also doesn't say anywhere that it stops if you claim the pension early at 55, which I'm pretty sure it would if that was the case.
Excellent information. Keep making such informative videos. Thank you
Thanks for the support.
Learning about EDP through your other video honestly changed my career intentions. A bit of a pension trap, but ultimately not a bad deal.
My only concern is by the time I get to EDP they’ll have cancelled it!
They won't cancel it, at least not under the AFPS15.. Certainly, pension changes in the future could happen. I think people would be naive to suggest it won't ever change again. But if they do, then just like in the past, pension rights on previously accrued schemes will be protected.
It is a very poor pension and it can't be fixed in the minds of the soldiers. It is bad, it is poor, and it is sickening to see our projection. I can give many reasons why it is poor
Then please do share those reasons. I'd be interested to hear.
Poor relative to what?? NHS is regarded as a decent pension and staff pay between about 6-13% from their wages into it and accrue at a career average rate of 1/54th. I'd therefore argue that a pension that you pay nothing at all in to and which accrues at a higher rate of 1/47 is pretty damned good! Is it as good as legacy schemes designed? No, but they were based off shorter life expectancies and are unaffordable unless the UK discovers the world's biggest natural hydrogen reserves!!!
Only found out about you last week. Great video. First time I have understood EDP after 20 plus years !
Glad I was able to help. Feel free to share this resource with other people too. Spread the word haha
@@thesavvysquaddie is this to say then that with 19 years and 11 months service, no EDP is given at al? Thanks Savvy Squaddie, great video.
Great information, keep updating more.👍
Cheers, appreciate it
Can you be in the army and do other works??
Yes but you'll need to make your CO aware you have other employment and if it becomes a hinderance to your main job then you'll have to stop. You'll also be responsible for declaring and paying the extra tax from any income you earn.
Very well explained, many thanks 🙏🏽
No dramas, glad it helped.
Very well explained - thank you.
Glad it was helpful.
What is the best way to connect you mate?
I'm on Instagram or X or by email thesavvysquaddie@gmail.com
Thanks for the video, learned a lot.
Glad it was helpful!
Absolute top-notch video. So much info on it that nobody talks about. Done 25 Yrs, snco and still going strong. Few more years till retirement. Thanks a lot.
No dramas, glad it's helped you.
Buy yourself a beer!
Thank you, much appreciated.
I did 3 years consecutive in the reserves on an ADC after 13 years regular - I’m now rejoining the regular to finish my career, mainly, for the pension!
First 🫡