Pension Calculator
Personal & Pension Details
Pension Analysis
Understanding Your Pension
A pension is a retirement plan that provides a regular income stream during your retirement years. The amount you receive typically depends on factors such as your years of service, final salary, and the type of pension plan you have.
Types of Pension Plans
Defined Benefit Plans
These plans promise a specific monthly benefit at retirement. The benefit is typically based on a formula that considers your salary history and years of service. The employer bears the investment risk.
Defined Contribution Plans
These plans specify how much money goes into your retirement account, typically through employer and employee contributions. The final benefit depends on how well the investments perform.
Important Considerations
- Check your pension plan's vesting schedule and requirements
- Consider how inflation might affect your pension's purchasing power
- Understand your pension's survivor benefits and options
- Review your pension alongside other retirement income sources
Remember that pension benefits can be complex and vary significantly between employers and plan types. Consider consulting with your HR department or a financial advisor for specific guidance about your pension plan.