Pension increase 2021

[Vauxhall]

I hit 55 early next year and should see an uplift from my lower commuted amount to the full amount, plus almost a decade of CPI rises. How close to my 55th birthday will I be informed as to how much my new monthly payment will be?

You can find out now by asking EP. See link.

EP will write to you at about the time the rise is due to tell you what you future pension payments will be.

https://equiniti.com/uk/contact-us/pension-member-enquiries/

 

[Late & Tired]

CPI Rate just released today (15 Sep) for August, shows an uplift of 1.2% to 3.2%
This could prove v interesting, with the Oct release (20 Oct), defining the 'usual' annual variation for AFPS from the Sep value.
I wonder if, (with current political views and economic situation), any value in excess of 2.5% will be honoured, especially as the scheme is outside of the triple-lock?
Moreover, there may be scope for 'algorithmic variation' to reduce the value next month (cynicism)...

 

[Tin basher]

CPI Rate just released today (15 Sep) for August, shows an uplift of 1.2% to 3.2%
This could prove v interesting, with the Oct release (20 Oct), defining the 'usual' annual variation for AFPS from the Sep value.
I wonder if, (with current political views and economic situation), any value in excess of 2.5% will be honoured, especially as the scheme is outside of the triple-lock?
Moreover, there may be scope for 'algorithmic variation' to reduce the value next month (cynicism)...

Or optimistically all us old gits get a giggly 3.2% to spend on beer and other essentials as a bare minimum.

 

[Late & Tired]

Or optimistically all us old gits get a giggly 3.2% to spend on beer and other essentials as a bare minimum.

Like Boris, I'm doing a personal reshuffle of my Cabinet and you TB, have got the post of AFPS enforcer

 

[busby1971]

You may well celebrate a 3.2% rise, but don’t forget everything now costs, on average, 3.2% more.

 

[Tin basher]

The FT says the September rate of inflation is 3.1%.

UK inflation dips to 3.1% in September

Relief likely to be temporary as energy and food prices rise

www.ft.com

3.1% rise next April just for getting out of bed will do nicely

 

[Late & Tired]

The FT says the September rate of inflation is 3.1%.

UK inflation dips to 3.1% in September

Relief likely to be temporary as energy and food prices rise

www.ft.com

3.1% rise next April just for getting out of bed will do nicely

Just beat me to it TB.
Plenty more beer chits (IF THIS GOVT HONOUR IT IN FULL).
Thankfully its not yet capped in line with the triple lock theft for this year..

 

[crapapp]

The FT says the September rate of inflation is 3.1%.

UK inflation dips to 3.1% in September

Relief likely to be temporary as energy and food prices rise

www.ft.com

3.1% rise next April just for getting out of bed will do nicely

Rate of inflation may be at 3.1% but pension rise based on CPI which is at 2.8%

 

[Late & Tired]

Rate of inflation may be at 3.1% but pension rise based on CPI which is at 2.8%

The pension rise for April is based on the previous Sep CPI value. This has just been released today and is shown at 3.1%. Are you not looking at the CPI(H) rate

 

[crapapp]

The pension rise for April is based on the previous Sep CPI value. This has just been released today and is shown at 3.1%. Are you not looking at the CPI(H) rate

You’re correct, I had been looking at the CPI(H) rate.

 

[Tin basher]

Plenty more beer chits (IF THIS GOVT HONOUR IT IN FULL).

And there's the rub IF........

 

[Captain Kirk]

Quick question about Pens05 EDP. When you hit age 55 the EDP jumps to 75% of your delayed pension. After age 55 does the EDP rise with CPI?

 

[Vauxhall]

yes

 

[dctyke]

One group of folks say Septembers figure is the average for the past year, others say it’s not and open to being ‘adjusted’. Does anyone have the definitive answer with something to back it up?

 

[busby1971]

The monthly annual Inflation figure is year on year change, theres also a monthly inflation figure from month to month.

This September’s figure should be healthy.

 

[Tin basher]

One group of folks say Septembers figure is the average for the past year, others say it’s not and open to being ‘adjusted’. Does anyone have the definitive answer with something to back it up?

No sure you would call it definative but from the experience of my own pension the April pension rise uses Septembers figure not the annual figure. 2011 was good (5.1%), 2020 less so (0.6%). There was no decrease in my pension in 2015 (-0.1%)

Stats from here

UK Historical Inflation Rates - 1988 to 2024

Historical inflation rates from 1989 to 2024 for United Kingdom.

www.rateinflation.com

 

[Late & Tired]

Alongside TB, my April change (since 2013), has always been the previous September CPI rate. In better times, RPI was used; however, traditionally this was slightly greater than CPI and the Chancellor of the day rotated to CPI. The new kid on the block CPI(H) has been muted in the past, but currently CPI remains the rate in use.

 

[Vauxhall]

Late & Tired is right, it is CPI (not RPI or CPI(H). The April rise is 3.1% (see link):

Armed Forces Pensions - Indexation & Revaluation - Forces Pension Society

Government has formally confirmed this year's Public Service pension Increase as 10.1%

forcespensionsociety.org

 

[Captain Kirk]

Vauxhall, ref #52& #53 for pens 05, it mentions a CPI increase on the immediate pension at age 55, or deferred pension at age 65. It doesn’t mention EDP at age 55, are you content that as an early leaver, on your 55th birthday that the EDP will start to rise at CPI?
[table]
[TR]
[TH]AFPS 75[/TH]
[TH]AFPS 05[/TH]
[TH]AFPS 15[/TH]
[/TR]
[TR]
[TD]Age 55 for pensions in payment or 60/65 if deferred[/TD]
[TD]Age 55 for immediate pension or age 65 if pension is deferred[/TD]
[TD]Age 60 for immediate pension or State Pension Age (67/68) if deferred.
[/TD]
[/TR]
[/table]

 

[Vauxhall]

To be precise, the EDP will rise to 75% of your deferred AFPS 05 pension and increase with the CPI increases which have occurred since you left, then increase by CPI every April thereafter.

I didn't mention this as the post above was about AFPS 75 Immediate Pensions.