Superannuation

[sandmaster]

I started work in 1964 and my employer (a very large national and international company) had a contributory pension scheme. Many of our clients also had pension schemes. My parents used to refer to 'superannuation' and many of their generation still do but to me it was an outdated phrase. Can anyone explain what it was as opposed to a pension scheme and when the use of the term was officially phased out?

[fiction-factory]

I've always thought it was just another term for a company pension scheme

[Old_Geezer]

http://www.investopedia.com/terms/s/superannuation.asp

Just a way of providing one's pension. As far as I'm concerned it's still a valid term. I suspect employers gradually started to use the description pension scheme as it generated fewer queries about what it was.

[sandmaster]

Thanks both. That is what I've always thought, but I occasionaly meet someone from my parents generation who believes it is a different system.

[mikey4444]

Its just a complicated word for something very simple.

For instance, If you worked for a company for 40 years, then you might suppose to get a pension of 40/80ths of your final salary.

So, final salary was say, £40,000 pa, you would then get a pension of half, ie £20,000 pa. If you worked for 30 years, then the formula would be 30/80ths of your final salary......£15,000 pa.

There were other types of schemes but this is how they would all work......your pension would depend on your final salary and the time worked.

Be aware though, that these type of pensions schemes are rare beast these days !