how are final salary pensions indexed
1 The number of years you have paid into the scheme. 2  Your salary â this might be your final salary when you retire, or your average salary across your career. 3  Your pension scheme's 'accrual rate' - this is a formula that's used to calculate your final retirement income. Your final salary when you retire is Â£30,000. 2  You've worked at your company for 40 years. 3  Your company uses an accrual rate of 1/60th. 4  Your annual pension would be Â£20,000 (40 (years) x 1/60th (accrual) x Â£30,000 (final salary).