Military pensions hit hard by cut to £12,500 per year
The pensions of thousands of military personnel are set to be hit hard after the government announced it was scrapping their pension scheme, which is seen as the most generous of all the major military pensions.
Armed Forces Minister Nick Herbert said the changes to the pension scheme would result in a reduction in the current pension of about £12.5 million.
He said the change would save the UK more than £1 billion.
However, the military is the biggest employer in the UK and has the most to lose by the decision.
A total of 3.6 million personnel will lose their pension.
“I’m sure that the people of the Armed Forces will be very pleased to see the government’s announcement of these changes and to have them announced as soon as possible,” he said.
Mr Herbert said there were more than 5.4 million members of the armed forces and more than 3.5million of them were aged between 45 and 54. “
There will be no immediate changes to our military pensions as a result of this change, but I hope that the government will see the value in our services and our sacrifices and take action to make sure we are providing our soldiers with the support they need to remain fit, safe and well-equipped for the next decade.”
Mr Herbert said there were more than 5.4 million members of the armed forces and more than 3.5million of them were aged between 45 and 54.
The Government announced the changes last month.
It is the latest move in a series of reforms by the government to ensure that the military has the best possible financial protection for its personnel and the economy.
Mr Herbert added that the Government would continue to invest in the Armed Services and ensure that it was well equipped to provide its soldiers with a quality of life in retirement.
He also said that the Armed forces had made a strong commitment to the Armed Service Pension Scheme, which provides an annual lump sum payment to members of military forces, and that the scheme would be fully restored to it when the new Defence Secretary is confirmed.
“We will have the support of all armed forces members and families as we deliver a modern and efficient defence,” he added.