Enter the age of the employee and the years of service into the calculator to determine the Rule of 80.
Rule Of 80 Formula
The following formula is used to calculate the Rule of 80.
R80 = A + YS
Variables:
- R80 is the Rule of 80
- A is the age of the employee (years)
- YS is the years of service at the company (years)
To calculate the Rule of 80, add the age of the employee to the years of service at the company. If the result is 80 or more, the employee is eligible for full retirement benefits.
What is a Rule Of 80?
The Rule of 80 is a calculation often used in pension plans to determine when an employee is eligible for full retirement benefits. It states that an employee can retire once their age plus years of service equals 80. For example, if an employee is 55 years old and has worked for the company for 25 years, they would meet the Rule of 80 and be eligible for full retirement benefits. The specifics of the rule can vary depending on the pension plan.
How to Calculate Rule Of 80?
The following steps outline how to calculate the Rule of 80.
- First, determine the age of the employee (A) in years.
- Next, determine the years of service at the company (YS) in years.
- Next, gather the formula from above = R80 = A + YS.
- Finally, calculate the Rule of 80.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
age of the employee (A) = 45
years of service at the company (YS) = 20
