What is Jamal's estimated annual pension upon retirement based on his defined-benefit pension plan?

To determine Jamal's estimated annual pension upon retirement based on his defined-benefit pension plan, it's important to understand how defined-benefit plans work. These plans typically provide a fixed retirement benefit that is calculated based on factors such as years of service, salary, and other specific plan formulas.

In this case, the estimated annual pension amount is calculated based on Jamal's length of service and earnings leading up to retirement. A benefit amount of $5,900 suggests that the formula used likely reflects a longer service period or a higher average salary, characteristic of many defined-benefit plans which reward employees for loyalty and consistent contribution over time.

This figure is significant in that it reflects the intended income Jamal can expect to receive regularly once he retires, which can be a critical element in planning his overall financial strategy in retirement. It provides a stable income source that can help cover living expenses without the need for Jamal to rely purely on personal savings or investment accounts for his retirement needs.

In contrast, lower amounts such as $4,000, $4,640, or $5,000 would typically imply either a shorter duration of service, lower final salary, or less favorable terms within the pension plan structure, which would not accurately represent Jam