What is Pension ?
Pension is a form of deferred compensation, where employees contribute a portion of their earnings during their working years into a pension fund, which is then invested to generate returns. Upon retirement, individuals receive regular payments from the pension fund, usually every month, to support their living expenses during retirement. Pensions are typically offered by employers as part of an employee benefits package, although some individuals may also have individual retirement accounts or other forms of pension plans. Pensions play a crucial role in retirement planning by providing retirees with a reliable source of income to maintain their standard of living after they stop working. It offers financial security for retirees and helps to ensure that individuals can enjoy a comfortable retirement without having to rely solely on personal savings.
How to Calculate Pension?
Pension calculator uses Pension = Average Salary*Factor in Terms of Percentage*Number of Years Worked to calculate the Pension, Pension is the fund that employers create for the employees of the organization, from where a fixed amount is paid to the employee every month as a fixed source of income during their lifetime. Pension is denoted by PN symbol.
How to calculate Pension using this online calculator? To use this online calculator for Pension, enter Average Salary (AS), Factor in Terms of Percentage (FP) & Number of Years Worked (nw) and hit the calculate button. Here is how the Pension calculation can be explained with given input values -> 9267 = 15445*0.04*15.