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Final salary pension - buying extra years

vicstar_2 · 2008-01-29 13:17:36

My OH is a civil servant and has a final salary pension. I believe the maximum pay out he can get under the scheme will be a pension of 40/60 of his final salary. As he won't have worked 40 years before he is due to retire he has the option of buying extra pension years - he has applied for this and to buy approx 7 years…

Comments

Andy_L Posts: 13,160 Forumite

4 February 2008 at 12:25PM

Make some estimates about investments returns above RPI

Make some estimates about salary increase above RPI

Make some estimates about annuity rates when you retire

Plug those numbers into excel & get your retirement income, as you've ignored RPI it will be in "todays money"
Vary those estimates to see how sensitive the answeres are to errors in your estimates

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