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Military pension age to rise to 60

The Ministry of Defence has outlined reforms to military pensions, with the age at which members of the Armed Forces can claim pensions rising from 55 to 60.

The changes are aimed at cutting the cost of public sector pensions.

All personnel under 45 will be affected by the new conditions, which will be introduced from April 2015. The MoD has clarified that the changes do not mean personnel will be expected to work until they are 60 years old; currently only 2% of those who serve do so until the pension age.

The new scheme will be based on a career average rather than a final salary scheme. An early retirement feature of the scheme, which provides a lump sum and a lower level of pension to staff aged over 40 with at least 18 years of service will also be affected, with the number of years of service to rise to 20 for personnel to be eligible.

The minister for defence personnel, welfare and veterans, Andrew Robathan, said: “The Government has had to make some tough decisions to ensure sustainable public service pensions which provide a fair deal for both service personnel and for the taxpayer.

“We recognise the unique commitment made by the Armed Forces and we have done all we can to protect them and make these changes in the fairest way possible.”

Pensions secretary of the Forces Pensions Society (FPS), David Marsh, said: “The MoD has done a very good job – under the consultation this is a very good job.”

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