How to work out your final salary pension
If you have saved into a final salary pension scheme during your career, it will provide you with an income for your retirement based on the above factors.
The pension income is worked out as follows: your years in the scheme, divided by the accrual rate and multiplied by the pensionable earnings.
For instance, if your final salary is £30,000, you worked for your company for 40 years and your company uses an accrual rate of 1/60th, your annual pension would be £20,000.
This figure is calculated by 40 x 1/60th x £30,000.