How the three Armed Forces Pension Schemes differ, and what each means for a civilian second career.
AFPS 75
The oldest scheme, available to those who joined before 2005 — no employee contributions required, but historically less generous accrual for shorter service compared with later schemes.
AFPS 05
Introduced in 2005, also non-contributory, with an Immediate Pension point typically after 18 years’ service (officers) or 22 years (other ranks) — a meaningful bridge into civilian income.
AFPS 15
The current career average scheme, contributory, aligned more closely with wider public sector pension reforms, with a pension age linked to State Pension age rather than an early Immediate Pension point.
Combining with a civilian salary
All three schemes’ pensions are taxed as income alongside any civilian earnings, which can push combined income into a higher tax band than either source alone would suggest.
Model your combined income with the Payslp By Profession tools.
Why the Immediate Pension point matters so much
The ability to draw a pension immediately after leaving service, rather than waiting until State Pension age, is one of the most financially significant differences between the older schemes and AFPS 15 — worth factoring heavily into any decision about a second career, since it changes when your combined income actually starts.
Frequently asked questions
Can I combine an Armed Forces pension with a new employer’s pension?
Yes, they’re entirely separate — your Armed Forces pension continues alongside any new employment and its own pension arrangement.
Does an Armed Forces pension affect my Personal Allowance?
It’s taxed as ordinary income alongside any other earnings, so combined income above £100,000 could trigger the Personal Allowance taper the same as any other income source.