How Much Is an Army Pension After 12 Years

Leaving the Army after 12 years? Learn how much your deferred pension could be under AFPS 2015 and when you can start receiving payments.

How Much Is an Army Pension After 12 Years?

Serving in the British Army not only offers a challenging and rewarding career but also provides access to a valuable Armed Forces pension. Whether you are considering leaving the Army after 12 years or planning for the future, it is important to understand what pension benefits you may be entitled to.

This article explains how the Armed Forces Pension Scheme (AFPS) works, how your benefits are calculated, and what level of pension you might expect after 12 years of military service.

How does the Armed Forces Pension Scheme work?

The current Armed Forces Pension Scheme is AFPS 2015, which applies to most serving personnel. This is a career average revalued earnings (CARE) scheme, which means your pension is based on your earnings during each year of service rather than your final salary.

Under AFPS 2015:

  • You earn a pension each year equal to 1/47th of your pensionable earnings for that year

  • Each year's pension amount is then revalued every year in line with inflation using the Consumer Prices Index plus a 1 percent uplift

  • You can normally begin drawing your pension from age 60, known as your State Pension age minus 10 years, or age 55 with a reduced amount

Earlier schemes such as AFPS 75 and AFPS 05 may apply to those who joined before 2005 or 2015, depending on whether they chose to transition to the new scheme. However, this article focuses on AFPS 2015 which covers the majority of current service leavers.

Can you get a pension after 12 years?

If you leave the Army after 12 years of service and are a member of AFPS 2015, you do not receive an immediate pension unless you are medically discharged or reach a certain age.

Instead, your pension becomes deferred, meaning:

  • It will be preserved and revalued each year until you reach pension age

  • You can claim it from age 60 (or earlier with a reduction)

  • Your earned pension is protected against inflation until you draw it

However, if you complete 20 years of service by age 40, you may be entitled to Early Departure Payments (EDP) under certain schemes such as AFPS 05, though this does not apply to AFPS 2015 unless you reach 20 years of service and age 40.

How much pension will I get after 12 years?

The actual amount depends on several factors:

  • Your rank and salary throughout service

  • The number of years of pensionable service

  • Annual pay increases and inflation

  • Whether you are a full-time regular or have periods of non-pensionable service

As a rough example, consider a corporal earning £33,000 in their final year. Over 12 years, assuming average salary growth and annual revaluation, you might build up a deferred pension of:

  • Approximately £5,000 to £6,000 per year from age 60

This estimate assumes steady career progression and does not account for inflation from the time of leaving to retirement age. If inflation averages 2 percent a year, the value of the pension could increase significantly by the time it is paid.

For those on lower pay or with slower progression, the pension may be closer to £4,000 per year. Higher ranks or specialist roles may earn more.

To get an accurate forecast, request a pension estimate from Veterans UK or use the AFPS pension calculator available online through the MOD.

What happens if you rejoin the Army later?

If you rejoin the Army after leaving, your previous pension rights are usually preserved and your new service may allow you to build further benefits. The pension earned in your first period of service remains deferred until your pension age unless specific continuity rules apply.

What if you are medically discharged?

If you are medically discharged with less than 12 years of service and are deemed permanently unfit for any military service, you may qualify for an invaliding pension and possibly a tax-free lump sum. The exact benefits depend on the tier of medical grading and your circumstances.

This is separate from the deferred pension system and is assessed on a case-by-case basis.

How to check your Army pension entitlement

To understand your pension benefits in detail:

  • Contact Veterans UK, the organisation that administers military pensions

  • Request a Service Leaver Pension Forecast

  • Use the MOD pension calculator (available via Defence Gateway) if you are a current member

  • Speak to your Unit Admin Office for assistance with pension queries

It is a good idea to start planning your pension options at least 12 months before your intended exit date.

Final thoughts

After 12 years in the British Army under the AFPS 2015 scheme, you are entitled to a deferred pension that will be preserved until you reach retirement age. While you will not receive payments immediately, your pension will grow with inflation and provide a reliable income in later life.

Depending on your earnings and progression, you might expect to receive £4,000 to £6,000 per year as a starting figure. For a personalised estimate, contact Veterans UK or use the official pension calculator.

Understanding your pension benefits is a vital part of preparing for civilian life and ensuring long-term financial security after military service.