Pension amount question.

[AdamD]

Quick question for you all

If you worked for a company for 33 years (In this case, Lloyds/Lloyds TSB)

How much pension do you think you'd get if you left after those 33 years?

Assuming you did a job for a salary of say, £20000.

I would hazard a guess you'd get a pretty big pension on leaving, right?

[Hugh]

Originally Posted by AdamD

Quick question for you all

If you worked for a company for 33 years (In this case, Lloyds/Lloyds TSB)

How much pension do you think you'd get if you left after those 33 years?

Assuming you did a job for a salary of say, £20000.

I would hazard a guess you'd get a pretty big pension on leaving, right?

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.

[AdamD]

Thanks hugh, that helps

[Pog66]

Originally Posted by Hugh

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.

[Mr_love_monkey]

Originally Posted by Pog66

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.

Depends on how much your income is...

http://www.hmrc.gov.uk/pensioners/pension-company.htm

[joglynne]

Originally Posted by Pog66

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.

Just to clear up one point. You will get taxed on your Pension if your taxable income - (including any State Pension) - is more than your tax-free personal allowance.

Oops got pipped at the post by Mr LM