You have worked for a company for 20 years and it provides a two percent final average earnings defined-benefit plan. Your average income on retirement was $70 000. What will your annual pension be?

Question

Quizplus · Accepted Answer

The annual pension is calculated as 2% of the final average earnings multiplied by the number of years worked. So, 2% of $70,000 is $1,400, and $1,400 multiplied by 20 years is $28,000.

You Have Worked for a Company for 20 Years and It