Martin Lewis explains benefits of workplace pension
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The estimated annual pension income for a luxury retirement is roughly £33,000, but three jobs offer far more than this. So, whilst others scramble to ensure they are making the most out of every income stream to supplement their retirement, it seems having a career in one of these positions can set up a luxury retirement automatically.
These calculations, provided by finance and pension experts Pension Times, only takes into account the occupational pension meaning workers can still add their own savings, benefits or state pension onto these sums.
The top eight occupation in the UK based on annual pension:
A 35-year-old teacher earning an average salary of £40,000 can see £46,000 annual pension income if they retire at age 68.
This is almost five times the amount of the annual new state pension and £10,000 than the average retiree household income in the UK.
Pension benefits for these occupations have been reduced since the early 2000s, with the Armed Forces Pension Scheme closing to new applicants from 2005.
However, those that still benefit from AFPS are experiencing one of the most generous schemes in the public sector.
A sergeant earning £36,000 can expect to retire at the age of 60 with £41,000 and a tax free lump sum of £22,000.
Politicians benefit from an incredibly generous pension scheme.
Currently, a 57-year-old politician earning £76,011 can retire in eight years with an annual pension income of £34,000.
All NHS employees have access to a CARE scheme which entitles them to a percentage of each year’s earnings.
A senior nurse earns an average of £35,000 and can retire after 25 years of service with a pension income of £14,500.
Additionally, employees can also receive a lump sum of a maximum £60,000.
Other honourable mentions:
Town planners – annual pension income of £29,500.
Police officers – annual pension income of £28,000.
Firefighters – annual pension income of £20,000.
As it stands, the new state pension offers £9,627.80 annual income whilst the basic state pension offers £7,376.20 per year.
However, the Pension and Lifetime Savings Association suggested that roughly £20,000 annual pension income is enough to afford retirement necessities.
They also noted that a luxury retirement will cost around £33,000.
Affording a luxury retirement is a goal for many, and funding it can often come through a variety of methods.
From state pension, private funds, investments and workplace pension, there is an array of income streams available for savvy savers and spenders that know where to look.
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