Isn ' t Scotland still technically part of the U . K . ? They haven ' t voted yet right ? <| sep |> Too much time for Samuel Bradford . <| sep |> EDIT Not a retirement actuary , but I did stay at a Holiday Inn last night . Your missing few things Mortality You have to include this in your PV calculations , both pre and post retirement . Inflation You should include an inflation rate . Salary Growth I ' d assume 3 % a year preinflation DB Payments I think 58 K yr is way too low for someone making $ 100 K yr especially if they are young and you include salary growth . I made an excel model that includes these things . I adjusted the DB payments to be 2 . 5 % yr of service final salary . Here are my assumptions Inflation 2 % Age 30 Current Salary $ 100 K Salary Growth Rate 3 % PostRetirement Pension Interest Rate 4 . 5 % Retirement Age 63 Mortality Table 2016 IRS mortality Employer Contribution % 13 . 9 % Employee Contribution % 13 . 9 % Additional Calculations based on assumptions Actuarial Present Value of DB at Retirement $ 1 . 8 million Annual DB payment at Retriement $ 113 . 8 K yr Average Annual Contribution $ 19 . 1 KConclusion Adjusting for mortality assuming if you die preretirement you get nothing , the annual ROI is 5 . 4 %, or 3 . 33 % inflation adjusted . The contribution that you ' re employer is making is pretty generous . Assuming 5 % employee w 5 % employer match , the implied interest rate is 8 . 2 % inflation adjusted . Quite generous compared to a DC .