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How is SERPS calculated?

Working out your SERPS pension requires a complex set of calculations. If you want to get an estimate of your SERPS pension the best way is to get a pension forecast

Even the basic principles are far from straightforward, but this is how it works:

SERPS depends on your pay over a maximum of 20 years. The only part of your pay which it takes into account is the band between the National Insurance lower and upper earnings limits. Each year's pay within this band is uprated in line with inflation. A maximum of 20 years of these revalued pay figures is then used to work out your SERPS pension.  The maximum pension you can receive from SERPS is 25 per cent of your average band earnings.