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    How to calculate your deferred pension?
    • #1
    • 15th Feb 13, 3:04 PM
    How to calculate your deferred pension? 15th Feb 13 at 3:04 PM
    Dear All,

    Wonder whether anyone has a formula for calculating the value of deferred pensions.I appreciate any calculation will be "rough" because we don't know what level of inflation there will be when I retire in 2023.

    I have asked a similar question previously,but at that time i was hopeful of returning to work-unfortunately my wife will not be improving to enable me to do this.

    I have my state pension which will generate approx 5800 and possibly 7280 when the new plans come into being for flate rate pensions.I have my 30 years NI contributions.
    I also have 2 deferred final salary pensions(both closed now).

    The first pension is valued at 6600 a year.(Final pensionable salary 54,000).The pre 2009 excess pension of 4770 will rise with inflation to a max of 5% pa until my retirment age. The post 2009 excess pension of 1830 will rise at 2.5% a year.

    The 2nd pension is valued at 9757 a year,GMP 1026 & Excess over GMP 8730.(Final pensionable salary of 46,000)+ an AVC fund of 13,000.
    At 65 I have 2 options with this pension-either
    1.Estimated main plan pension of 16,500 a year + AVC of 13K or
    2.estimated reduced main pension plan of 12342 + pension commencement lump sum of 69000 + AVC of 13K.

    My GMP is revalued at a fixed rate of 4.5% A YEAR(COMPOUND)between my date of leaving in 2003 and my 65th birthday in 2023.
    My excess pension is revalued in line with scheme rules,broadly mirroring inflation up to a maximum of 5% per year.

    What would my approximate pensionable value be or how would I calculate it?.
    Any advice greatly appreciated.
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