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Old 18-05-2011, 13:20   #4
Pog66
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Re: Pension amount question.

Quote:
Originally Posted by Hugh View Post
It depends on what your contribution is and what the company contribution is - which varies company to company.

If people are thinking of leaving, they tend to be given a pension forecast (which can vary on when they wish to draw down the pension).

But, in trying to answer your question, if the company works on the 80ths rule, so the person would get 33/80ths of their salary, which works out at £8250 per annum, or just under £600 per month before tax.
You don't generally get taxed on a pension I believe.

Hugh's assumption is based on a final salary or defined benefit type pension - as the employer was a bank I woudl have thought a finakl salary would be in splace for some of the time however it MIGHT have been closed to contributions and changed to a stakeholder or defined contribution type pension.
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