Hi davesmum
Taken from our mate wiki

Chelsea pensioner
From Wikipedia, the free encyclopedia
A Chelsea pensioner is an in-pensioner at the Royal Hospital Chelsea, a retirement home and nursing home for former members of the British Army located in Chelsea, London. Historically, however, the phrase applied more widely, referring to both in-pensioners and out-pensioners.
In- and out-pensioners
During the reign of King James II, the Royal Hospital was still under construction, so he introduced a system for distribution of army pensions in 1689. The pension was to be made available to all former soldiers who had been injured in service, or who had served for more than 20 years.
By the time the Hospital was completed, there were more pensioners than places available in the Hospital. Eligible ex-soldiers who could not be housed in the Hospital were termed out-pensioners, receiving their pension from the Royal Hospital but living outside it. In-pensioners, by contrast, surrender their army pension and live within the Royal Hospital.
In 1703, there were only 51 out-pensioners. By 1815 this figure had risen to 36,757.
The Royal Hospital remained responsible for distributing army pensions until 1955, following which the phrase "out-pensioner" became less common, and "Chelsea pensioner" was used largely to refer to "in-pensioners".
Hope this helps
Timberman