The UN staff pension can provide anywhere from roughly 30% to as high as 70% of a staff member’s final average salary for life. The years of contributory service and pensionable remuneration affect the total.
Understanding how much UN employees receive and how the pension system works is essential for anyone considering a long-term UN career.
This article covers:
- How does the United Nations pension work?
- How do you calculate how much your UN pension will be?
- What is the retirement age in the UN?
- Who is eligible for the UN pension?
Key Takeaways:
- The UN pension provides lifetime monthly income with optional partial lump sum.
- UN staff contribute 7.9% while the UN contributes over double.
- The UNJSPF is a multi-billion-dollar global fund with diversified, professionally managed investments.
- Retirement age depends on entry date, ranging from 60 to 65 for full benefits.
If you’re a UN staff member and have questions, feel free to reach out at hello@adamfayed.com or WhatsApp +44-7393-450-837.
The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Is the United Nations pension good?
The UN pension is widely considered strong because it offers lifetime monthly benefits, survivor protections, disability coverage, and an investment portfolio that has historically delivered stable returns.
The fund is fully funded and professionally managed, giving staff a high degree of reliability compared to many national pension systems that face deficits.
The quality of the pension is also linked to the UN’s long-term employment structure.
Staff who serve for decades can retire with dependable income for life, which is particularly valuable for internationally mobile professionals who may not contribute long enough to national pension systems in different countries.
How does the UN pension work?
The UN pension is administered through the United Nations Joint Staff Pension Fund (UNJSPF) and operates as a defined benefit system combining mandatory staff contributions with employer contributions.
Staff generally pay around 7.9 percent of their pensionable remuneration, while the UN contributes more than double that amount.
These contributions generate a pensionable service record that determines retirement benefits.
The system offers two main retirement options. Staff can receive a lifetime monthly pension, also called the periodic benefit, or a lump sum combined with a reduced monthly pension depending on their years of service and contract type.
In all cases, benefits are based on final average remuneration and total years of contributory service.
How much is the UN pension fund?
The UN pension fund has net assets of approximately US $95.4 billion as of 2024, which is one of the largest global pension funds among international institutions.
The fund maintains a diversified portfolio that includes global equities, bonds, real estate, and alternative investments.
Its size and diversified structure allow it to generate steady long-term returns that support both current and future retirees.
The fund’s long-term sustainability is closely monitored through regular audits and actuarial valuations, which consistently show that it maintains strong funding ratios relative to its liabilities, ensuring reliable retirement benefits for UN staff around the world.
How to calculate the UN pension?
The UN pension is calculated based on your final average salary, your total years of contributory service, and the UNJSPF benefit formula, which assigns increasing accrual rates for longer service.
In simple terms, the more you earn and the longer you contribute, the higher your lifetime pension will be. This can be summarized with the formula:
Annual Pension = Final Average Remuneration × Accrual Rate × Years of Contributory Service
The accrual rate typically starts at 1.5% per year for the first five years of service, 1.75% for the next five years, and 2% for each year beyond ten.
The final average remuneration is calculated from the highest 36 months of pensionable earnings, and staff may choose to take a portion as a lump sum, which reduces the monthly periodic benefit.
What is the retirement age for UN pension?
The retirement age for the UN pension generally ranges from 60 to 65 years, determined by the staff member’s UNJSPF entry date.
The Normal Retirement Age (NRA) is set as follows:
- Joined before 01 January 1990 → NRA is 60 years
- Joined between 01 January 1990 and 31 December 2013 → NRA is 62 years
- Joined on or after 01 January 2014 → NRA is 65 years
Staff with at least five years of contributory service are entitled to a full pension at NRA.
Early retirement is available with reduced benefits:
- Joined before 01 January 2014 → Early retirement age is 55 years
- Joined on or after 01 January 2014 → Early retirement age is 58 years
The Mandatory Age of Separation (MAS) is set by the employing organization and may not match the NRA.
For example, the UN currently sets MAS at 65.
Staff who continue working past their NRA remain active contributors to the UNJSPF, which increases future pension benefits, though the pension cannot be received until separation.
This framework balances length of service, longevity trends, and long-term sustainability of the UNJSPF.
What are the benefits of working at the UN?
Working at the UN offers competitive salaries, comprehensive benefits, and strong career advantages beyond the pension.
Staff receive tax-free salaries, comprehensive health insurance, education grants for dependent children, hardship allowances in challenging duty stations, and opportunities for international mobility.
The UN pension is a significant financial benefit, particularly for expats who may not qualify for full national pensions in the countries where they work.
Additional advantages include career stability, strong employment rights, and a reputation that enhances one’s professional profile worldwide.
How to get a UN pension?
To get a UN pension, you need to participate in the UNJSPF through an eligible appointment, contribute during your service, and meet the required years of pensionable service.
Here’s a step-by-step guide for both prospective and current UN staff:
1. For prospective UN staff – secure an eligible contract.
Only permanent, continuing, or fixed-term appointments of six months or longer qualify for UNJSPF participation. Once appointed, you automatically become part of the fund.
2. Contribute to the UNJSPF.
Staff contribute 7.9% of pensionable remuneration, while the UN contributes 15.8%. Contributions accumulate throughout your service, building your pensionable record.
3. Accumulate sufficient service.
-Full retirement benefits require at least five years of contributory service
-Staff with shorter service may be eligible for a withdrawal settlement or deferred benefits. Current UN staff simply continue contributing each month to increase future entitlements.
4. Monitor your service and benefit entitlements.
Current staff should regularly review their pensionable service, salary records, and projected benefits through the UNJSPF portal to ensure accurate calculations and eligibility.
5. Submit separation documents when leaving or retiring.
Provide all required paperwork to the UNJSPF, including your chosen benefit option. This step applies whether you are retiring normally, taking early retirement, or leaving with a withdrawal settlement.
6. Choose your payout option.
Options include a lifetime monthly pension, a partial lump sum with reduced monthly payments, or a withdrawal settlement for those not eligible for full retirement benefits.
7. Receive pension payments.
Once processed, the UNJSPF pays benefits according to your selection, ensuring long-term financial security for current and former staff.
Conclusion
The UN pension is more than just a retirement plan; it reflects decades of service, international mobility, and long-term financial security.
For both prospective and current staff, understanding how the system works and planning contributions carefully can maximize lifetime benefits while taking full advantage of the broader financial and career perks of UN employment.
FAQs
How much do UN employees get paid?
UN employees typically earn USD 40,000 to USD 80,000 annually at entry-level professional grades, with mid-level and senior staff earning significantly more.
Salaries vary by grade, duty station, and contract type.
Professional staff (P levels) and Director levels receive tax-free base salaries plus post-adjustments that reflect the cost of living in each duty station.
These adjustments ensure compensation remains competitive and fair across locations worldwide.
Who pays the best pension in the world?
Pension-system rankings such as the Mercer CFA Institute Global Pension Index consistently place the Netherlands, Iceland and Denmark among the top countries worldwide for retirement income security, sustainability, and integrity.
This underscores that certain national pension systems are widely regarded as among the world’s best.
Can I take 100% of my pension as a lump sum?
No. Under the UNJSPF, staff who qualify for a normal retirement benefit cannot take their entire pension as a lump sum and may commute up to a third. The rest is paid as a reduced monthly pension.
A full lump-sum withdrawal is only possible for staff with less than five years of contributory service or those who leave before qualifying for a retirement benefit, in which case they receive a withdrawal settlement.
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