When You Hit 55

[Captain Kirk]

I’m nearly there and have a question for fellow goaters that have passed this point.
I have a job, so my EDP is taxed under the code BR, which I get and my tax allowances are connected to my salary.
I’m 55 soon so am interested in finding out what my new EDP is in case I need to present it as an income for a loan etc. Because it’s coded BR Equinity won’t send me a new tax code, and all I will have to deal with is an increased payment which I guess I can reverse engineer?
The solution is to call them after I’m 55, but just calling out to see if there’s experience on this in the meantime.
Another question I have is concerning the CPI increases I’ll get from 2 years EDP. I left April 21, but birth month is July. Does the 10.1% get pro rata’d or because I’m already in receipt of an EDP do I get the whole 10.1%.
Like my complete office, I will be joining the FPS again nearer October for the razor sharp advice, but I don’t think they need my dumbass questions I’ve asked here.

 

[Tin basher]

It may take a while to wade past the chatter to the bits you need but there could be some gen hiding in this 2021 pension increase thread.

Pension increase 2021

I am aware that the CPI rate given for Sep 2020 was 0.5%. Do we normally receive confirmation 'in written communication' that the Govt will give that value in the following April application, or is it a fixed policy which needs no communication to members? I seem to recall in the past, getting a...

www.egoat.net

 

[Captain Kirk]

Thanks mate. No letter yet, colleague at work turned 55 last month and didn’t get one either.
He was commissioned and has always got a statement from equinity each month stating how much his EDP will be for that month.
I wasn’t commissioned and have had the odd tax code change when my EDP was the primary income.
Is there a tax benefit to having one or the other as a primary income?

 

[Deltaitem]

What does EDP, CPI and FPS mean? I'm guessing BR is basic rate.

 

[ady eflog]

What does EDP, CPI and FPS mean? I'm guessing BR is basic rate.

EDP is Early Departure Payment, its basically your payment from leaving until 55
CPI is the Consumer Price Index which pensions are aligned to for growth used to be RPI, Retail Price Index
FPS is the Forces Pension Society

 

[Deltaitem]

I’m nearly there and have a question for fellow goaters that have passed this point.
I have a job, so my EDP is taxed under the code BR, which I get and my tax allowances are connected to my salary.
I’m 55 soon so am interested in finding out what my new EDP is in case I need to present it as an income for a loan etc. Because it’s coded BR Equinity won’t send me a new tax code, and all I will have to deal with is an increased payment which I guess I can reverse engineer?
The solution is to call them after I’m 55, but just calling out to see if there’s experience on this in the meantime.
Another question I have is concerning the CPI increases I’ll get from 2 years EDP. I left April 21, but birth month is July. Does the 10.1% get pro rata’d or because I’m already in receipt of an EDP do I get the whole 10.1%.
Like my complete office, I will be joining the FPS again nearer October for the razor sharp advice, but I don’t think they need my dumbass questions I’ve asked here.

I'd say there's no such thing as a dumbass question, especially when it concerns your pension, and provided they don't actually dock your payments for asking FPS said question, then ask them.

 

[Captain Kirk]

Got a pay slip from equinity with one day to go. Showed present payment and new payment. That’s for a partial new month payment. Pension is paid on 21st, birthday was 25th, so it will jump again next month.

 

[Downsizer]

Ball park - how much was the rise?

 

[Vauxhall]

It would depend upon when he left. It is the cummulative CPI on his original award.

 

[Tin basher]

Ball park - how much was the rise?

It's different for everyone and in simple terms its complicated. Many variables are at play but.. assuming you left at 45 and commuted as much cash as possible then your pension would remain unchanged for the 10 years until you reach 55. At 55 your pension would increase to what it would have been if you hadn't commuted anything at all. In addition it would rise by the yearly rate of inflation on a compound scale. So 10 years of static pension would rise on your 55th birthday in two different ways. The actual amount of increase depends on how the rate of inflation behaves over that hypothtetical 10 year period and how much you commuted in the first place.

Allegedly

 

[foxOneFive]

Ball park - how much was the rise?

I left 2004, after 22. age 40. commuted the lot. Professional Cpl. At age 55 increase was 89% and another £100 since the recent 10% rise

 

[Downsizer]

Your pension went up by 89%?

 

[busby1971]

compound impact plus removal of commuting, 89% still seems high though.

 

[Mug?]

Bit late to this one as sounds like OP got the answer in the letter.
I would be interested to hear how much difference the 2 years made?
For 05 EDP I'd expect age 55 figure to be Half again on top of existing. 75% up from 50%
I'm currently predicting for my EDP to be a 100% increase (double) at age 55. 15 years after I left.

 

[Captain Kirk]

21.7% was my jump. Left April21.
This includes 2 CPIs and the jump up to 75% of my real pension which will be age 65 and part age 67.

 

[foxOneFive]

Your pension went up by 89%?

yep honest, was 535 for many years and at 55 went to late 900's. Nobody was as surprised as me

 

[foxOneFive]

Just thought about it and my birthday is end of March, so probably got the annual increase added on also, whatever it was 4 years ago