How to Value a Pension for Net Worth: Accurate Calculation Guide
Figuring out your net worth requires considering all your assets, including your often-overlooked pension. This comprehensive guide will walk you through accurately valuing your pension, whether it's a defined benefit (DB) or defined contribution (DC) plan, to ensure an accurate reflection of your financial health. Understanding Your Pension Type: The Foundation Before calculating your pension's value, understanding its type is crucial. There are two primary types: Defined Benefit (DB) Pensions: These guarantee a specific monthly payment in retirement, typically based on your salary and years of service....