Creating Wealth, Making Money, Investing Wisely, Pensions

These offer a guaranteed pension amount, which is based on the salary of the employee and the amount of service that he has given to the employer.  These are typically based on 1/80 or 1/60 of the salary and are based on the number of year of service.

 So for example, if someone was earning £20,000 per annum and had served 20 years in a 1/60 scheme, the pension of this individual would be 20, which is the number of years, divided by 60, which is the 60^th part, times £20,000, which is the salary which equals £6,666.