What is a career average pension scheme?
Millions of staff working in the public sector have had a new piece of jargon thrust at them - the career average pension scheme. Or, to give them their ghastly full title, Career Average Revalued Earnings (CARE) pension schemes. They are designed to provide generally lower pensions than traditional final-salary schemes.
What is the average pension at age 60 in the UK?
Pensions consultancy Barnett Waddingham has calculated that a 50-year-old man who joins a company on £25,000 a year with a final-salary scheme that pays 1/60th of salary at retirement for each year of service could expect a pension at age 60 of £6,200 a year. This assumes average earnings increases of 4.5% a year.
How is the amount of pension I receive calculated?
For members in Career Average, the amount of pension you receive is based on your pensionable earnings each year for the period you are a member of the Teachers’ Pension Scheme. Every year you’ll accumulate a pension of 1/57th of your pensionable earnings, including any overtime. The pension you build up each year will be added