Understanding Final Salary Pensions
A final salary pension scheme will promise benefits upon retirement that are linked to your salary at (or near to) the date of your retirement. Typically, you will earn a fraction of your final pensionable pay for each year that you have been a member of the scheme - maybe one sixtieth or eightieth of final pensionable pay.
It is important to remember that all final salary schemes are different. Everything changes once you leave an occupational scheme so it is important that you review it as soon as this happens.
The advantages of final salary pensions are
- You know how much you are contributing.
- You contribute a percentage of your pensionable pay and your employer pays the rest.
- Your pension income is guaranteed as long as your employer stays in the scheme.
If you do not fully understand your final salary pension or wish to learn more about the benefits this type of scheme delivers why not contact our customer service team today when they can arrange for a FCA regulated adviser to call you back.
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