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Pension Calculation
Moncs_2
Posts: 183 Forumite
I'm 32 years old and have had my company pension for about 4 years now, I'm lucky that its still a Final Salary scheme, which I pay in 4% and they pay 8&, I also pay 1% to an AVC which they match, so in total I pay 14% of my salary to my pension.
I was wondering on that basis, is there any calcaulation which can be done that could estimate how much I would get should I retire at 60??
Reason I ask is that I got a letter from the govenment the other day saying that due to their calculations I should get £150 p/w (in todays money) when I retire from my state pension.
I was wondering on that basis, is there any calcaulation which can be done that could estimate how much I would get should I retire at 60??
Reason I ask is that I got a letter from the govenment the other day saying that due to their calculations I should get £150 p/w (in todays money) when I retire from my state pension.
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Comments
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You can ask your pension administrator for that information.
Alternatively, you can work out the number of years you have been in it plus the number of years to go and divide that by the accrual rate and multiply that by your current pensionable salary. That would give you a rough idea of the income in todays terms.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
dunstonh wrote:You can ask your pension administrator for that information.
Alternatively, you can work out the number of years you have been in it plus the number of years to go and divide that by the accrual rate and multiply that by your current pensionable salary. That would give you a rough idea of the income in todays terms.
ok say for example I have been in the plan 4yrs, and plan to be there for another 28, obviously I know my current salary, how do I find out my accrual rate? (i know its a 1/80 final salary scheme)0 -
The 1/80 is your accrual rate. You are accruing pension at one-eightieth of your pensionable earnings for each year you are in the scheme.
So, 4+28=32 Years
32 multiplied by 1/80 x your pensionable earnings (p.e). Your p.e. might not be the same as your salary but probably good enough for a back of the envelope calc.
If your p.e. is 20k your pension, in todays value, is £8,000 per annum (i.e. if you were leaving now after 32 years service with a final pensionable salary of £20k)
Hope this makes some sense!
Your AVC's will be on top of this.£2 coin savers club £42 (joined 2 May 2006)
Pre Challenge Grocery Spending av £454.17:eek:
May Grocery Challenge £345 Total spent £342.19 :j :j :j June Grocery Challenge £300 Total spent £451.81:mad:
July Grocery Challenge £300 Total spent0 -
Anybody else feel that 8% employers contribution to a NRA 60 final salary scheme seems low?0
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