News this week that
Armed forces could see their pension age rise from 55 to 60 under new
government plans, has caused concerns to army personnel.
The proposed changes
will affect all service personnel under the age of 45, this is part of the
government shake up to reduce the cost of public pensions.
Currently the armed
forces have two main pension sections, for those who started between 1975 and
2005 and those who joined after that date. However in both sections, the
retirement age was 55.
The government has stated
that pension rights accrued under the exiting schemes will be protected, and
the unique early retirement feature of the scheme will also remain. This is in
the form of a lower level pension, and a lump sum is paid to service personnel
with at least 18 years service, aged 40 or over. The length of time in service
will rise to 20 years.
David Marsh
secretary of the FPS stated: "This will mainly affect officers who tend to
join after university rather than the other ranks who join about the age of
20," said David Marsh, pensions secretary of the FPS.
However the
rest of the public sector pension ages are going to rise from 65 to 68, in line
with an increased life expectancy.
If you are in the armed forces and are concerned about the amount of pensions you will receive then get in touch with one of our IFA's.
If you are in the armed forces and are concerned about the amount of pensions you will receive then get in touch with one of our IFA's.
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