How Much Is an Army Pension

Learn how Army pensions are calculated in the UK and how much you could receive after full or partial service under the Armed Forces Pension Scheme.

How Much Is an Army Pension?

An Army pension is a key part of the overall benefits package offered to service personnel in the British Army. It provides a secure, inflation-protected income in retirement and is widely considered one of the most generous public service pensions in the UK.

The amount of pension you will receive depends on when you joined the Army, how long you served, your rank and salary, and which Armed Forces Pension Scheme (AFPS) you are covered by.

This article explains how Army pensions work, the different schemes in place, and how much you might expect to receive depending on your service record.

Types of Army Pension Schemes

There are currently three main Armed Forces Pension Schemes:

  1. AFPS 75 — for those who joined before 6 April 2005

  2. AFPS 05 — for those who joined between 6 April 2005 and 31 March 2015

  3. AFPS 15 — for those who joined on or after 1 April 2015 or who transitioned to the scheme following the McCloud judgment

From 1 April 2022, almost all serving personnel are building up benefits under AFPS 15, although earlier pension rights are protected.

Each scheme has different rules about how pensions are earned and when they can be claimed.

How is an Army pension calculated?

The method of calculation depends on which scheme you are in:

Under AFPS 75 and AFPS 05:

  • Your pension is based on your rank and final salary

  • You earn a set portion of your pay for each year of service

  • After a minimum number of years, you may qualify for an immediate pension or a preserved pension payable later

Under AFPS 15:

  • You earn pension benefits based on career average earnings

  • Each year, you build up 1 forty-seventh of your pensionable pay for that year

  • The amount is then increased annually in line with inflation

  • Pensions are usually payable from age 60 or later unless taken early with a reduction

How much is the pension after a full career?

A full career in the Army is typically considered to be around 22 to 24 years of service, often starting from age 18.

Example: 22 years' service under AFPS 75

  • A sergeant or staff sergeant might receive an annual pension of £10,000 to £13,000

  • They would also receive a tax-free lump sum worth three times their annual pension, which could be around £30,000 to £39,000

Higher ranks such as warrant officers or commissioned officers would receive more, with pensions often exceeding £20,000 to £25,000 per year

Deferred pensions

If you leave the Army before qualifying for an immediate pension, you may receive a deferred pension, which is preserved until you reach your pension age.

For those under AFPS 15, the normal pension age is 60 if you were in service on or before 1 April 2015, and State Pension age for anyone who joined after that date.

The deferred pension is revalued each year with inflation until it is paid.

Early Departure Payments (EDP)

If you leave the Army after at least 20 years of service and are aged at least 40 when you leave, you may qualify for Early Departure Payments under AFPS 15.

You will receive:

  • A tax-free lump sum of 2.25 times your deferred pension

  • A monthly income starting immediately and payable until your deferred pension starts

This helps bridge the gap between leaving service and reaching pension age.

What about medical discharge?

If you are medically discharged, you may qualify for a pension regardless of your age or length of service. The amount will depend on your medical grading and whether you can work again in civilian life.

You may also receive a lump sum or ongoing income depending on the severity of your condition.

How to check your Army pension forecast

You can request a pension estimate through:

  • Veterans UK, the official administrator of military pensions

  • Your unit administration office

  • The AFPS pension calculator available via Defence Gateway if you are still serving

These tools will give you a personalised forecast based on your actual service history and current rank.

Final thoughts

The amount of Army pension you receive depends on several factors, including your scheme, years of service, and rank. A soldier with a full career could receive £10,000 to £20,000 per year, along with a significant lump sum, while shorter service leads to a deferred pension payable later.

Whether you are approaching retirement or planning ahead early in your career, understanding how the Armed Forces Pension Scheme works will help you make informed decisions about your future.