Final salary schemes are also known as defined benefit schemes. With this type scheme, your pension will be a set percentage of your final salary depending on the length of service with the company. The pension received will be based on a fraction of the money taken into account by the scheme at retirement. The size of the fraction depends upon your length of service.
The most commonly used fractions are one-sixtieth or one-eightieth for each year of service. For example, anybody in a final salary pension scheme based on sixtieths between the ages of 25 and 65would be entitled to a pension of two-thirds of their final salary (this is the maximum permissible). Fewer years of service means a smaller pension, so retiring early generally means a reduced pension. Private sector pension schemes may offer the option of exchanging part of your retirement fund for a tax-free lump sum.
Final salary schemes sometimes provide members with other features as well as an income at retirement; such as the option to exchange a percentage of the pension for a tax-free cash sum; life assurance cover; survivor’s and children’s pensions after the member’s death; ill-health early retirement; the option to pay additional voluntary contributions (AVCs) to buy additional benefits.
As fewer and fewer people today remain with the same company throughout their working lives, if you leave the company, the benefits in the scheme can be left as a deferred pension (provided you have been in the scheme for two years or more) or the pension could be transferred into another scheme. It is always a good idea to take financial advice before considering moving a pension.
You can also request contact details from the Pension Tracing Service by phone or by post.
The Pension Tracing Service
Telephone: 0800 1223 170
From outside the UK: +44 (0) 1782 389134
Monday to Friday, 9:30 am to 5:00 pm
Address
The Pension Tracing Service
The Lantern
High Street
Ilfracombe
EX34 9QB
Copyright 2026 by Pension Tracing Service®
The Pension Tracing Service® is a trading style of Millennial Wealth Ltd. We are authorised and regulated by the Financial Conduct Authority (FCA number 914746). Pinnacle House, 34 Newark Road, Peterborough, PE1 5YD. Registered company number 11557299.
Profile Pensions is a trading name of Profile Financial Solutions Ltd, authorised and regulated by the Financial Conduct Authority (FCA number 596398). Registered office: Norwest Court, Guildhall Street, Preston, PR1 3NU.
This service is not affiliated with the Department for Work and Pensions or any government body. When you click to get started, you'll be taken to Profile Pensions to complete your sign-up and begin the Find, Check & Transfer service. Capital at risk: the value of investments can go down as well as up and you may get back less than you put in. Past performance is not a guide to future performance. Tax treatment depends on your individual circumstances and may change.
See how we handle your data.