Pension questions

garmeg

Albermarle said:

ccluedo said:

Thank you squirrelpie, yes it was an extremely pleasant surprise as I had originally (in my ignorance of how pensions work) expected just the date of leaving amount of £4720 pa!

Well in reality you will actually get £4720 but adjusted for inflation . So in theory what you could buy in goods and services when you left the company for £4720 , you should still be able to afford the same things now.
The effects of inflation on spending power is often underestimated.

As they left in 1993 the fixed rate GMP revaluation (if applicable) of 7.50% or 7.00% per annum is well ahead of inflation. The non GMP will just have kept pace with inflation.

sammyjammy

You worked there for 11 years in the 80s and accrued nearly £5k in pension?  You must have a been a very high earner!

NoMore

sammyjammy said:

You worked there for 11 years in the 80s and accrued nearly £5k in pension?  You must have a been a very high earner!

Not really, if it was a final salary 60ths scheme for example, you would only need a salary of about 25k to have achieved that after 11 years

ffacoffipawb

NoMore said:

sammyjammy said:

You worked there for 11 years in the 80s and accrued nearly £5k in pension?  You must have a been a very high earner!

Not really, if it was a final salary 60ths scheme for example, you would only need a salary of about 25k to have achieved that after 11 years

£25k was a lot of money in 1993 - perhaps the equivalent of £60k today?

NoMore

ffacoffipawb said:

NoMore said:

sammyjammy said:

You worked there for 11 years in the 80s and accrued nearly £5k in pension?  You must have a been a very high earner!

Not really, if it was a final salary 60ths scheme for example, you would only need a salary of about 25k to have achieved that after 11 years

£25k was a lot of money in 1993 - perhaps the equivalent of £60k today?

https://www.in2013dollars.com/uk/inflation/1993?amount=25000
According to this it is nearer to 51k, still not a 'very' high earner.

ccluedo

From memory I was on around £27k when I left which was a pretty good salary for a female in those days but believe me I worked hard and earned every penny