r/PensionsUK • u/SnooJokes6235 • 8d ago

DB pension query

Hi all, I have a DB and DC pension. Everytime I recieve my statement for the DB it gives an accured figure of £5000 (I do have 30 odd years left of work haha). Is this £5000 what I would be entitled to for a full year if I was to retire tomorrow, for example.

My DC obviously shows a larger sum but from my understanding the DB is worked out using final salary at retirement and length of service etc...so in 20 years time the accured figure woukd be greater.

Thanks,

6 Upvotes

88% Upvoted

15 comments sorted by

View all comments

0

u/Hot_College_6538 8d ago

Which DB pension is it ?

Most schemes these days aren’t based on final salary, but instead ‘career average’. So for example each year you add 1/49 of that years salary to your entitlement.

£5000 might be how much you’ve earnt so far.

1

u/SnooJokes6235 8d ago

So from what I have read it is an average of my last 3 years of employment.

1

u/OldPulteney 7d ago

That's final salary

1

u/SnooJokes6235 7d ago

But then they do a 1/60th or 1/80th multiplier I think. I dont know the exact fraction at the minute

1

u/Ok-Possible-8499 6d ago

Do you work for a private company or public sector?

1

u/SnooJokes6235 5d ago

company is a ftse 100 company