Armed forces pension calculator
Estimate the pension you could build up in the Armed Forces Pension Scheme 2015 (AFPS 15), a career average (CARE) scheme. This is an estimate based on the assumptions you choose. Your annual benefit statement is the source of truth.
Rules last checked 13 October 2026.
Your pay and service
Pensionable earnings are basic pay. Allowances, expenses, bonuses and financial incentives are excluded, and so are Loan Service Pay and Recruitment and Retention Pay.
There is no maximum number of years that count in a CARE scheme.
The MOD says the pot increases each year with inflation and uses 2% in its example. These are example values, not predictions.
Use the CARE pot figure on your annual benefit statement. This calculator assumes it is the amount at the start of the first year you model.
Leaving
All optional.
The qualifying point is 20 years of Regular service and age 40. Your Early Departure Payment statement shows the exact number.
Lump sum
Each £1 of annual pension you give up gives £12 of lump sum. This cannot be more than your total pension.
Enter your pensionable earnings and the years of service to model to see an estimate.
Nothing you enter leaves your device. This is an estimate, not financial advice. Your annual benefit statement shows your actual benefits. Rules are set out in the scheme regulations, which take priority over any guidance.
How the AFPS 15 pension is worked out
AFPS 15 is a career average (CARE) scheme. Every scheme year, the MOD adds 1/47th of your annual pensionable earnings for that year to your pension pot. There is no maximum number of years that count. Each year the pot increases and your further service is added.
For example, earnings of £47,000 give a pot of £1,000 in year 1. In year 2, with 2% inflation, the pot is £1,000 plus £20, plus £1,010 from year 2, a total of £2,030.
| Pension added each year | 1/47 of pensionable earnings |
|---|---|
| Normal pension age | 60 |
| Pension exchange rate | £12 of lump sum for each £1 of pension given up |
| Early Departure Payment | Age 40 or over with at least 20 years of service |
How the pot is increased
The MOD says the pot increases each year with inflation. The AFPS 15 booklet (May 2023) describes the growth as based on the Average Weekly Earnings index. Because the wording differs between sources, this calculator lets you enter the increase yourself. Your annual benefit statement shows the actual figure. Once your pension is in payment it increases each year in line with CPI.
What counts as pensionable earnings
Pensionable earnings are basic pay, excluding allowances, expenses, bonuses and financial incentives. Loan Service Pay and Recruitment and Retention Pay are also excluded.
When you can take your pension
Normal pension age is 60. If you serve to 60 or over you can claim an immediate pension. If you leave earlier you get a deferred pension payable at State Pension age, which you must claim, and you can ask for it from 55 at a reduced rate. You need at least 2 years of paid service to qualify for most benefits. You can check your State Pension age on GOV.UK.
Early Departure Payment (EDP)
An Early Departure Payment is for Regular Forces members who leave aged 40 or over but before 60 with at least 20 years of Regular service. It pays a tax-free lump sum of 2.25 times your annual deferred pension and a taxable monthly income of 34% of your annual deferred pension, plus 0.85% for each additional year served beyond the qualifying point. The income is flat until 55, then adjusted for CPI. It stops at State Pension age, when the deferred pension starts.
- Leaving at age 40 with 20 years' service gives 34% of the deferred pension.
- Leaving at age 44 with 24 years' service gives 37.4% of the deferred pension.
Tax-free lump sum
AFPS 15 does not pay a lump sum automatically. You can exchange part of your pension for a tax-free lump sum at 12 to 1, so each £1 of annual pension you give up gives £12. You can take up to 25% of your overall pension benefits as a lump sum. The decision must be made within 6 months before the pension is due and it cannot be reversed.
Contributions
The AFPS 15 booklet says the pension is free and you make no contributions.
What this calculator does not include
- Older Armed Forces pension schemes.
- Ill-health and death benefits.
- The reduced rate for a deferred pension claimed from 55.
- The 25% lump sum limit check.
- Tax on the pension.
- Added pension or voluntary contributions.
- Reserve service rules beyond the earnings you enter.
Results are estimates. Your annual benefit statement is the source of truth.
Building a pension in the NHS instead? Try the NHS pension calculator.
Thinking about drawing a private pension? Try the pension drawdown calculator.
Frequently asked questions
How is the Armed Forces pension calculated in AFPS 15?
AFPS 15 is a career average (CARE) scheme. Every year, the MOD adds 1/47th of your annual pensionable earnings for that year to your pension pot. There is no maximum number of years that count.
How is the pension pot increased each year?
The MOD says the pot increases each year with inflation and uses 2% in its example. The AFPS 15 booklet from May 2023 describes the growth as based on the Average Weekly Earnings index. Because the wording differs, the calculator lets you enter the rate, and your annual benefit statement shows the actual figure.
What is the normal pension age in AFPS 15?
It is 60. If you serve to the normal pension age of 60, you are entitled to claim an immediate pension.
What happens if I leave before 60?
You get a deferred pension, which is payable at your State Pension age and which you must claim. You can ask for it from age 55 at a reduced rate. A deferred pension increases each year in line with inflation (CPI).
Do I pay contributions into AFPS 15?
The AFPS 15 booklet says the pension is free and you make no contributions.
What counts as pensionable earnings?
Pensionable earnings are basic pay. Allowances, expenses, bonuses and financial incentives are excluded, and so are Loan Service Pay and Recruitment and Retention Pay.
What is an Early Departure Payment?
It is a benefit for Regular Forces members who leave aged 40 or over but before 60 with at least 20 years of Regular service. It pays a tax-free lump sum of 2.25 times your annual deferred pension and a monthly income of 34% of the deferred pension, plus 0.85% for each additional year served beyond the qualifying point. It stops at State Pension age, when the deferred pension starts.
Is there a lump sum in AFPS 15?
Not automatically. You can exchange part of your pension for a tax-free lump sum at 12 to 1, so each £1 of annual pension you give up gives £12. You can take up to 25% of your overall pension benefits as a lump sum, the decision must be made within 6 months before the pension is due, and it cannot be reversed.
How many years of service do I need?
You need at least 2 years of paid service to qualify for most AFPS 15 pension benefits.
Does this calculator cover older Armed Forces pension schemes?
No. It covers AFPS 15 only. If you have older service, check your annual benefit statement, because older schemes work differently.
Sources
Rules checked against these official pages on 13 October 2026:
Read how we keep calculators accurate, or browse all UK calculators.
PayPrompt is independent and is not affiliated with the Ministry of Defence or the Armed Forces.
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