Relative Value of Final Salary Pension

neil07

Hi,

I have a final salary 1/80th pension. I am trying to find out how much I would have to invest to get the same benefits on retirement if I had to move to a defined contribution scheme. I understand that the great advantage with the present scheme is the certainty of benefits vis a vis final salary - but am not sure how to estimate how much more I would need to invest monthly in a defined contribution scheme to have a chance of hitting the same pension.

Cheers
Neil007

jem16

I believe it's in the region of 15-20%.

EdInvestor

To find the size of fund you would need to pay a specific amount of pension you need to work backwards from annuity rates, see the tables here:

https://www.fsa.gov.uk/tables

Don't forget to faxtor in the cost of index linking for inflation and spouse's pension which add considerably to the cost.