What Is The Formula For Pension
What Is The Formula For Pension
A pension is a retirement benefit typically provided by employers to their employees after a certain period of service. The calculation for pension benefits depends on some elements and also the type of retirement plan. The amount of pension is usually determined by a formula and this formula takes into account:
- Number of years of service
- Salary
- Accrual rate
By using this element, the pension formula will provide you with a structural way to calculate how much a retiree will receive monthly
Formula Used To Calculate For Pension
Below is the formula which is used when it comes to the calculation of pension
Annual Pension: Accrual Rate * Years of Service and * Final Average Salary
READ MORE: www gepf gov za self-service login balance check
Payment Dates Of Pension
- 30 April
- 31 May
- 30 June
- 30 July
- 31 August
- 30 September
- 29 October
- 30 November
- 31 December
- 31 January
- 28 February
- 31 March
How Does The Two-Pot System Work
The two-pot system gives members access to some of their savings for urgent needs, whilst protecting the steady and reliable income after retirement. It’s an approach that carefully balances the need for long-term retirement security with the ability to meet immediate financial challenges.
READ ALSO: Where do I find out how much pension I will get?
What The Government Employee Pension Funds Invests In
Here are the four classes the GEPF invests in
- Equities
- Fixed income
- Properties and
- Isibaya Funds
Pension Calculation Tools
- Pension Calculator by Bankrate
- Retirement Calculator by Kiplinger
- Pension Estimator by Social Security Administration
Benefits Of GEPF
- Retirement benefits
- Resignation benefits
- Unclaimed benefits
- Death benefits
- Divorce benefits
- Child Pension
- Spouse Pension
- Funeral benefits
Client Centre
GEPF Administration Office
Building 2A, Trevenna Campus
Corner Meintjies and Francis Baard
Street
Sunnyside, Pretoria
Knowing the formula for calculating your pension will help you know your contributing balance with GEPF and avoid fraud from people who assist pensioners in calculating their contributions. Visit the official website for more updates.