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🎖️ Military Pension Transfer

Military Pension Transfer Transition Planning

The Armed Forces Pension Scheme (AFPS) provides valuable benefits, but transitioning to civilian life raises questions about whether to keep your military pension, transfer it, or combine it with civilian savings.

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What Is a Military Pension Transfer?

A military pension transfer involves moving benefits from the Armed Forces Pension Scheme (AFPS) to a personal pension such as a SIPP. The UK military operates several pension schemes: AFPS 75, AFPS 05, and AFPS 15, each with different benefit structures, retirement ages, and transfer rules. Military pensions are unfunded defined benefit schemes, meaning benefits are paid from current MOD expenditure rather than invested assets.

Military pensions are considered among the most generous in the UK, providing guaranteed income with inflation-linked increases, early retirement options (especially for those with 20+ years of service), and substantial death-in-service benefits. The Early Departure Payment (EDP) scheme provides a lump sum and income for those who serve at least 20 years and reach age 40.

Transferring out of a military pension is a significant decision. The key considerations include:

  • Scheme variations – AFPS 75 is a final salary scheme with an Immediate Pension (IP) after 16 years, AFPS 05 offers EDP after 18 years, and AFPS 15 is a CARE scheme with a pension age of 60. Each has very different benefits.
  • Early Departure Payment – AFPS 05 and 15 members who serve at least 20 years receive an EDP – a tax-free lump sum plus income from age 40 until the main pension starts at 55 or 60. This is lost on transfer.
  • Immediate Pension – AFPS 75 members who complete 16 years of service receive an Immediate Pension paid from their leaving date, regardless of age. This valuable benefit is forfeited on transfer.
  • Resettlement and transition – many service leavers transition to civilian careers and may want to consolidate their military pension with new workplace pensions for simplicity.
  • Injury and ill-health pensions – military personnel injured in service may receive additional pension benefits or compensation through AFCS (Armed Forces Compensation Scheme). These are separate from the main pension and not transferable.
  • Mandatory advice – as a DB pension worth over £30,000, military pensions require regulated financial advice before any transfer can proceed.
Key fact: Under AFPS 75, a service member who completes a full 22-year career receives an Immediate Pension of approximately 48.5% of their final pensionable pay, paid from the date they leave service. This is an exceptionally generous benefit that very few private sector pensions can match.
Military Pension Options

Keeping vs Transferring Your Military Pension

A comparison of the key differences between keeping your armed forces pension and transferring to a personal pension.

FeatureKeep Military PensionTransfer to Personal Pension
Income guaranteeGuaranteed, CPI-linked for lifeDepends on investment returns
Early accessIP from leaving (AFPS 75) or EDP from 40From age 55 (57 from 2028)
FlexibilityFixed income structureFull flexibility under pension freedoms
Death benefitsSpouse pension + lump sumFull remaining pot to any beneficiary
Investment riskNone – government-backedFull investment risk on you
EDP / IP benefitsRetained if eligibleLost permanently on transfer
Important: Military pensions provide exceptionally generous benefits including early retirement income, inflation protection, and government backing. Transferring means giving up these guarantees permanently. The vast majority of military personnel are better off keeping their armed forces pension.
Who Is It For?

Who Benefits from Military Pension Transfer Advice?

While keeping a military pension is usually the best option, these situations may warrant professional transfer advice.

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Left the Armed Forces Early

You served less than 16 years (AFPS 75) or 20 years (AFPS 05/15) and have a deferred pension rather than an immediate one. Your transfer decision is different from someone with full service benefits.

Assess the value of your deferred military benefits
❤️

Health Concerns After Service

If you have health issues that may reduce your life expectancy, the guaranteed income becomes less valuable and a transferred pot could offer more flexibility and better inheritance options.

Explore how your health affects the transfer decision
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Estate Planning for Family

Military death benefits are limited to spouses and dependants. If you want to leave pension savings to adult children or other beneficiaries, a DC pot offers more nomination flexibility.

Compare military death benefits against DC options
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Successful Second Career

If you have built substantial wealth in your civilian career with large other pensions and savings, the guaranteed military income may be less critical and flexibility more attractive.

Model your total retirement income from all sources
💰

Large CETV Offered

Your transfer value statement shows a significant CETV. Professional analysis can determine whether this represents fair value for the benefits you would be giving up.

Get a specialist CETV analysis
🌍

Planning to Live Overseas

Many military personnel retire abroad. A transferred pension may offer greater flexibility in how you receive income internationally and manage currency exposure.

Get international pension planning advice

Considering transferring your military pension?

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Costs Explained

How Much Does Military Pension Transfer Advice Cost?

Military pension transfer advice requires understanding of the unique AFPS scheme structures and benefits.

£1,500–£4,500
Initial Transfer Advice
Comprehensive analysis of your AFPS benefits including scheme-specific features (IP, EDP), CETV assessment, cash flow modelling, and a personal recommendation. Legally required for military pensions worth over £30,000.
0.5%–1%/year
Ongoing Management
If you transfer, ongoing fees cover investment management, drawdown planning, and annual reviews. Recommended for those managing a large transferred pot, especially during the transition from military to civilian life.
Worth knowing: Through PensionHelper, our matching service is free with no obligation. Military pensions have unique features that require specialist knowledge. We match you with advisers experienced in armed forces pension transfers.
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Real Reviews

What Our Customers Say

Stuart M.
Stuart M.
Hampshire • Military Pension Transfer
★★★★★
“IP kept – right decision”

After 22 years in the Army, my Immediate Pension was paying £15,000 a year from age 40. The adviser showed me the CETV would need to achieve 8% returns annually to match it. Keeping the IP was a no-brainer.

Karen S.
Karen S.
Wiltshire • Military Pension Transfer
★★★★★
“Deferred pension reviewed”

I left the RAF after 12 years with a deferred AFPS 05 pension. The adviser reviewed my CETV and overall situation. For my circumstances, transferring to a SIPP made sense as I missed the EDP threshold.

James R.
James R.
Plymouth • Military Pension Transfer
★★★★★
“Complex situation explained clearly”

With benefits in both AFPS 75 and AFPS 15 from a long career spanning the scheme change, I needed expert help. The adviser explained how each set of benefits worked and recommended keeping both.

Michelle D.
Michelle D.
Colchester • Military Pension Transfer
★★★★★
“Transition planning sorted”

Leaving the forces after 20 years, I needed to understand how my EDP, main pension, and new civilian workplace pension would all fit together. The adviser created a complete retirement timeline.

Andrew B.
Andrew B.
Edinburgh • Military Pension Transfer
★★★★★
“Honest advice I needed”

Was tempted by a £320,000 CETV to transfer. The adviser demonstrated clearly that the guaranteed pension was worth far more over my expected lifetime. That honest advice saved me from a serious mistake.

Laura G.
Laura G.
Catterick • Military Pension Transfer
★★★★★
“Spouse pension concerns addressed”

My main worry was death benefits for my wife if something happened to me. The adviser showed me the military spouse pension was actually very generous and transferring would not necessarily improve on it.

Learn More

Related Guides

Explore our guides for more information on military pension transfers.

DB Pension Transfers

Understanding defined benefit transfers

Armed Forces Pension Advice

Specialist military pension guidance

Civil Service Transfers

Public sector pension options

Police Pension Transfers

Police pension scheme options

Early Retirement Planning

Planning for early retirement

Pension Transfer Guide

Complete guide to UK pension transfers
Got Questions?

Military Pension Transfer: Frequently Asked Questions

Yes, you can request a CETV from the armed forces pension scheme and transfer it to a SIPP. Because military pensions are DB schemes typically worth more than £30,000, you must obtain regulated financial advice before any transfer can proceed.
The AFPS provides defined benefit pensions for UK military personnel. There are three main schemes: AFPS 75 (final salary with Immediate Pension after 16 years), AFPS 05 (final salary with EDP after 18 years), and AFPS 15 (career average with pension age 60, EDP after 20 years).
Under AFPS 75, an Immediate Pension is paid from the date you leave the armed forces (after qualifying service of at least 16 years), regardless of your age. This means a soldier leaving at 38 after 22 years receives income immediately. It is an exceptionally valuable benefit unique to the military.
EDP applies to AFPS 05 and 15 members who serve at least 20 years and reach age 40. It provides a tax-free lump sum (2.25 to 3 times pensionable pay) plus income (around 50% of your deferred pension) from age 40 until your main pension age. This benefit is lost on transfer.
For most military personnel, especially those with IP or EDP entitlements, keeping the military pension is the better option. The guaranteed, index-linked income with early access is extremely valuable. Transfer may only suit those with short service, reduced life expectancy, or very specific estate planning needs.
CETVs for military pensions vary widely based on rank, years of service, age, and scheme section. A 22-year career could generate a CETV of £300,000 to £600,000 or more. However, the CETV typically understates the true value of the guaranteed benefits.
If you leave before qualifying for IP (AFPS 75) or EDP (AFPS 05/15), you receive a deferred pension payable from scheme pension age (55 for AFPS 75, 65 for AFPS 05, 60 for AFPS 15). You can request a CETV to explore transfer options.
Yes. If you transfer your AFPS pension, you lose the EDP entitlement permanently. Since the EDP provides a tax-free lump sum and income from age 40, this is a very significant benefit to give up. Most advisers will recommend keeping the pension for this reason.
No, the AFPS requires a full transfer of all benefits. You cannot transfer a portion and retain the rest within the scheme. This all-or-nothing requirement makes the decision even more consequential.
Contact Veterans UK (the armed forces pension administrator) to request a CETV quotation. You can do this online, by phone, or by post. The CETV quotation is usually provided within 3 to 6 weeks and is valid for 3 months from the guarantee date.
Yes. All AFPS pensions are increased annually in line with the Consumer Prices Index (CPI). This inflation protection is a significant benefit that ensures your pension maintains its purchasing power throughout retirement.
AFPS provides a death-in-service lump sum (typically 4x salary), a spouse or partner pension (various rates depending on scheme), children’s pensions, and a bereavement grant. These benefits are in addition to any Armed Forces Compensation Scheme payments for service-related injuries.
You can transfer your military pension to a SIPP alongside civilian pensions, but this means giving up the DB benefits. Alternatively, you can keep your military pension separate and consolidate your civilian pensions. An adviser can model both approaches to determine which works best.
Yes. The McCloud remedy applies to AFPS members who were in AFPS 75 or AFPS 05 before moving to AFPS 15 in 2015. Eligible members will have their benefits recalculated to provide the better of old and new scheme terms for the remedy period, potentially increasing their pension and CETV.
Through PensionHelper, you can be matched with an FCA-regulated adviser experienced in military pension transfers. The Forces Pension Society also provides guidance to members. Always ensure any adviser holds the required DB pension transfer qualifications.

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