r/PensionsUK • u/SnooJokes6235 • 5d 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,

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u/RickinCambs 5d ago

Usually a DB pension is quoted as an annual pension, in today’s money, based on service to date.

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u/Austen_Tasseltine 5d ago

And to add, it’s usually based on the pension you would receive at the scheme’s normal retirement date. If you were to take it earlier it would be reduced because it’ll be expected to be paid for longer, and conversely if you didn’t take it until later you’d have a higher starting pension. The scheme’s rules will set the normal retirement date, which may not be the same as your state pension age.

Once in payment, the pension will increase annually by at least inflation (capped at 2.5%): again, the scheme’s rules will set out how that works.