Tuesday, December 20, 2005

Final Salary Pensions: important?

Rentokil has announced it is abandoning its Final Salary Pension Scheme. What does it mean?

Person works 40 years, final salary of £25 000.
They get a pension of 2/3s £25 000
=£16 667 a year.

Under Rentokil’s plans they would get £8 000 a year.
Quite a big difference.

The government & companies are trying to get us to sort out our pensions & retirement savings.

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