Final-salary definitions
| Word backwards | yralas-lanif |
|---|---|
| Part of speech | The part of speech of the word "final-salary" is a compound noun. |
| Syllabic division | fi-nal-sa-la-ry |
| Plural | The plural of the word final-salary is final-salaries. |
| Total letters | 11 |
| Vogais (2) | i,a |
| Consonants (6) | f,n,l,s,r,y |
Final-salary, also known as defined benefit pension schemes, are retirement plans where the income a retiree receives is based on their salary and the number of years they worked for a company. These plans offer a guaranteed income for life, providing financial security for retirees.
Benefits of Final-Salary Schemes
One of the key benefits of final-salary schemes is the certainty they provide. Retirees can rely on a fixed income that is typically linked to their salary at the time of retirement. This can offer peace of mind and stability during retirement. Additionally, final-salary schemes often include inflation protection, ensuring that the purchasing power of the pension remains relatively stable over time.
Considerations for Final-Salary Schemes
While final-salary schemes offer many advantages, there are also considerations to keep in mind. Companies that offer these plans are responsible for funding them, which can become costly as retirees live longer. As a result, some companies have transitioned away from final-salary schemes in favor of defined contribution plans, where the retiree bears the investment risk.
Flexibility in Retirement Planning
Final-salary schemes can provide retirees with flexibility in retirement planning. Some plans allow for early retirement with reduced benefits, while others offer the option to take a lump sum in addition to regular pension payments. This flexibility can help retirees tailor their retirement income to their specific needs and circumstances.
In conclusion, final-salary schemes offer a valuable retirement benefit by providing a guaranteed income for life based on a retiree's salary and years of service. While these plans come with advantages such as stability and inflation protection, it is important to consider the financial implications for the company offering the scheme. Overall, final-salary schemes can be a helpful tool in retirement planning for employees looking for a secure income during their later years.
Final-salary Examples
- His final-salary pension was much higher than he had anticipated.
- The final-salary scheme was the most popular among employees.
- After years of service, she was entitled to a final-salary package.
- The company decided to switch from a final-salary to a defined-contribution plan.
- Many companies are phasing out final-salary pensions in favor of other options.
- She calculated her final-salary benefits before retiring.
- In his retirement, he relied on his final-salary income.
- The final-salary payout was based on the average of the employee's last few years of service.
- Negotiating a final-salary agreement was a key part of the union's demands.
- She was pleased with the final-salary offer from her employer.