FINANCE
ON THE MONEY
When leaving the Armed Forces, finances might be a continuing concern or cause of worry, especially when looking for a new job or home. We explain how to claim your pension if you are at retirement age and what benefits you could be entitled to
PENSIONS All members of the Armed Forces are automatically enrolled in the Armed Forces Pension Scheme (AFPS). Unlike other pensions, you don’t pay contributions towards this: to reflect the unique sacrifice you have provided for your country, the scheme is paid from the public purse. Your pension could be provided to you after you’ve left the Armed Forces or when you retire and it does not affect your state pension. In order to receive the pension, you must have served for at least two years. If you serve until you are 60, your pension becomes payable immediately, otherwise it won’t be payable until state pension age. The only exception to this is if you are unable to serve for your full career. If you have completed 20 years’ service and are aged 40 or over, you could be entitled to an income from the pension scheme. The amount of your pension will depend on your rank, your length of service and how old you were when you joined. You could also have different pension schemes depending on when you signed up for service. It is easy to estimate your pension online or by post using the Armed Forces Pension 14
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The amount of your pension will depend on your rank, your length of service and how old you were when you joined Calculator (www.gov.uk). For more advice and information about the AFPS, contact the Forces Pension Society (www.forcespensionsociety.org).
BENEFITS After leaving the Armed Forces you could claim certain benefits if you are struggling to find steady work, looking for somewhere to live or need extra support due to illness or injury. This includes veteran-specific benefits as well as benefits available to everyone. If you have an injury or illness caused by service in the Armed Forces that occurred on or after 6 April 2005, you could be entitled to money from the Armed Forces Compensation Scheme. The scheme consists of weekly
payments and lump sum payments, with weekly payments often referred to as Guaranteed Income Payment. The amount of money you receive depends on how severely you have been hurt or disabled, and your age. The Armed Forces Independence Payment could also help you if an injury as a result of service has resulted in extra costs for you. The benefit is paid at a rate of £148.85 per week. This is the equivalent of the enhanced rate of Personal Independence Payment (PIP) or the highest rate of Disabled Living Allowance (DLA), but is only available to ex-Forces personnel. This benefit isn’t means tested so you can apply regardless of your current financial situation. Along with Armed Forces specific benefits, you could also apply for Universal Credit, Jobseeker’s Allowance or Housing Benefit. For more information on benefits visit the UK Government website and speak to Veterans UK. ■
FIND OUT MORE
For further advice and support with finances when you leave the Armed Forces, contact the Money Advice Service (www.moneyadviceservice.org.uk).
