boss_al wrote:
Just did sum quick sums, if you expect an average annual pay increase of RPI + 2% which I don't think is unreasonable. And a current salary of 50k and RPI average of 3%
After 10 years
Final salary £81,000 Final pensionable salary £70,000
20 Years
Final salary £130,000 Final pensionable salary £99,000
30 Years
Final salary £210,000 Final pensionable salary £140,000
40 years
Final salary £350,000 Final pensionable salary £190,000
As I said quick sums so might not be totally correct but close enough I think that’s a F@@king massive difference.
Forget about actual salary figures as they are meaningless, we never really know what our final salary is until the day we retire . However taking your figure of an average salary increase of RPI + 2%, buy my calculations this would mean anyone who had maximum years in the scheme would actually end up with a pension of 40% of their final salary rather than the 66% you would get retiring if you are able to retire now.