UKAEA Pensions

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Examples of benefit calculations

Example 1

Scheme Service: 40 years
Final Earnings: £15,000
Assuming Annual Pensions Increase at 4% a year

 Annual PensionLump SumAnnual Pension
At Retirement 7500.00 22,500  
After 1 Year 7800.00   After 6 years 9489.89
After 2 years 8112.00   After 7 years 9869.48
After 3 years 8436.48   After 8 years 10264.26
After 4 years 8773.93   After 9 years 10674.83
After 5 years 9124.89   After 10 years 11101.83
Example 2

Scheme Service: 25 years
Final Earnings: £15,000
Assuming Annual Pensions Increase at 4% a year

 Annual PensionLump SumAnnual Pension
At Retirement 4687.50 14062.50  
After 1 Year 4875.00   After 6 years 5931.18
After 2 years 5070.00   After 7 years 6168.43
After 3 years 5272.80   After 8 years 6415.16
After 4 years 5483.71   After 9 years 6671.77
After 5 years 5703.06   After 10 years 6938.64
Lump sum

The lump sum will normally equal three times your basic annual pension when you retire. In our examples above you would receive a tax-free lump sum of £22,500 after 40 years of service, or £14,062.50 after 25 years of service.

 You may choose to take a higher lump than the standard three eightieths described above. In each of the examples set out here the additional lump sum and lower pension would be:

                                                                                  Additional Lump sum   Lower Starting Pension 

40 years service and £15,000 pensionable final earnings:           £17,678.57                 £6026.79

25 years service and £15,000 pensionable final earnings:           £11,048.11                 £3766.74

Your decision to take a higher lump sum and lower pension will generally not affect spouse and child benefits.