How Much is an Army Pension in the UK? Full Guide for Ex-Service Members

Find out how much an army pension is worth in the UK. Learn about pension schemes, payments after 22 years of service, lump sums, and Early Departure Payments.

An army pension provides financial support for former members of the British Armed Forces, ensuring they receive income after leaving military service. The amount varies based on length of service, rank, and the specific Armed Forces Pension Scheme (AFPS) you were enrolled in.

Understanding how military pensions work can help service personnel plan for their financial future, whether they are retiring after a full career or leaving after a shorter period.

How Army Pensions Are Calculated

The amount of an army pension depends on three key factors:

  1. Years of Service – The longer you serve, the higher your pension entitlement.

  2. Rank on Leaving – Higher-ranking personnel receive larger pensions.

  3. Which Pension Scheme You Are Under – Different rules apply depending on when you joined the Armed Forces.

The main UK Armed Forces Pension Schemes include:

  • AFPS 75 – For those who joined before April 2005.

  • AFPS 05 – For those who joined between April 2005 and March 2015.

  • AFPS 15 – For those who joined on or after April 2015.

Some service members may have benefits from multiple schemes due to military pension reforms.

How Much After 22 Years of Service?

For those who serve 22 years or more, the pension amount depends on the scheme:

  • AFPS 75 – Immediate pension payments plus a tax-free lump sum of three times the annual pension.

  • AFPS 05 – No immediate pension, but a deferred pension payable from age 65. Instead, service members may receive an Early Departure Payment (EDP) from the age of 40.

  • AFPS 15 – Career-average scheme with pension payable from state pension age but with potential EDP benefits.

Estimated pension amounts for 22 years of service under AFPS 75:

  • Private – Around £10,000 to £12,000 per year, with a lump sum of £30,000 to £36,000.

  • Sergeant – Around £15,000 per year, with a lump sum of £45,000.

  • Warrant Officer – Around £20,000 per year, with a lump sum of £60,000.

For AFPS 05 and AFPS 15, the pension amount will generally be lower immediately but can be supplemented by an Early Departure Payment until the full pension begins.

What is the Early Departure Payment (EDP)?

The EDP is a financial bridge for those who leave the Army before reaching full pension age. It provides:

  • A lump sum on leaving service.

  • Monthly payments until the deferred pension starts at 65 (AFPS 05) or state pension age (AFPS 15).

Can You Increase Your Army Pension?

There are ways to boost your pension benefits, including:

  • Serving Longer – The more years served, the higher the pension.

  • Additional Voluntary Contributions (AVCs) – Extra savings that supplement your pension.

  • Combining Pensions – If you have worked elsewhere, you may be able to transfer other pensions into a personal retirement plan.

Final Thoughts

The amount of an army pension depends on service length, rank, and pension scheme. Those who serve 22 years or more under AFPS 75 receive an immediate pension with a lump sum, while those under AFPS 05 or AFPS 15 may receive an Early Departure Payment before their full pension kicks in.

If you are unsure about your entitlement, you can request a pension forecast from Veterans UK or seek advice from a military pensions specialist.