State Pension estimate

mozattack

Hi there,

I came across this calculator online and I was wondering if it was accurate - it relates to pension estimates for new entrants in the civil service.

I have entered in the following data:

- 29 years civil service
- retirement age is 65
- final salary is €57k
- full time worker the whole period of service

Is this reasonably accurate?

I am surprised to see the lump sum so high.

Comments appreciated

AlexisM

You seem to have put in 29 years service to date PLUS 29 future years from now until retirement - so 58 years total. This is capped at 40 years service which would give you a lump sum of 1.5 times salary = 57 * 1.5 = 85.5 which is what this shows.

You probably don't have 29 years service to date if you were born in 1979...

mozattack

Many thanks, I have updated this, does this seem right so?

AlexisM

Yes. Looks correct to the euro.

mozattack

AlexisM wrote: »

Yes. Looks correct to the euro.

Thanks, it isn't bad but crap compared to current leavers. Any chance come that day, in 30 years time, it will end up being better.

Is the annual.pension quoted the amount in today's money or are they absolute figures?

AlexisM

How is it crap compared to current leavers? A current leaver on 57K with 29 years service should get the exact same - what's different is that they will have contributed a lot less (possibly zero). But the benefits (a pension of 50% of salary plus a lump sum of 1.5 times salary after 40 years ~ pro-rated down if service is less than 40 years) should be the same.

The annual pension is based on your salary today. If inflation/promotion/increments increase your salary over time, the pension and lump sum amounts will be greater.

mozattack

No its good, better than nothing, just not the telephone numbers I have seen in recent years. That's for your help

Bobeagleburger

How much per year contributions is needed for that estimate ?