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new pension rules
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When the new pension rules come in april 2006 it will be possible to take as a lump sum 25% of the pension value. How do you calculate the value of a final salary pension.
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For more on marking an answer as the "Best Answer", please visit our FAQ.Most final salary schemes I have come across pay a lump sum (usually 3 times the annual pension) anyway so there will be no need to calculate values.
For those that don't there will be a formula for calculating the value taking into account the annual pension, any guaranteed increases and life expectancy. The Scheme administrators will be responsible for working it out.