classic projected pension
As this is an illustration only, we base it on your current pensionable salary, although we will use your best year's earnings if you are near to the illustrated age to give a more realistic figure. We multiply your salary/earnings by your projected years of reckonable service by 1/80th.
Example:
If you are 50 at the statement date, your salary is £20,000 and your reckonable service is 15 years, your projected pension
- for age 60 would be 15 plus 10 (the number of years you have to go to 60) = 25 x £20,000 x 1/80 = £6,250 a year.
- for age 65 would be 15 plus 15 (the number of years to 65) = 30 x £20,000 x 1/80 = £7,500 a year.
The figure illustrated for age 55 includes a reduction to reflect the fact that it will be paid for longer. The reduction is typically just over 5% for each year that you take your pension early.
You would also have an automatic lump sum of three times your initial pension (£18,750) and you would be able to exchange some of your pension for a higher cash lump sum.
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