Income is the amount of money which comes to a person or organisation. All income comes under tax regulations.
Part ofApplications of MathsFinancial skills
Many people are either required, or choose, to make a payment to a pension plan from their income. This is sometimes called ‘superannuation’.
Public service jobs such as nurses, teachers, and fire service have their own pension plans. Many businesses offer access to private pension plans.
The earlier a person starts making pension contributions, the more time the plan has to build the money available at retirement.
In most plans the employer also makes a payment as part of the working contract.
Amina pays \(6\%\) of her salary in pension contributions. She earns \(\pounds27000\) in a year. How much is her pension contribution per month?
\(6\% of 27\,000 = \pounds1\,620\)
Payment each month \(= 1620 \div 12 = \pounds135\)
Now try this question:
Virgil pays \(6\%\) of his salary in pension contributions. He earns \(\pounds23\,000\) in a year. How much is his pension contribution per month?
\(6\% of 23\,000 = \pounds1\,380\)
Payment each month \(= 1380 \div 12 = \pounds115\)
