Which of the following income sources is relevant for pension purposes?

• A. Salary you receive from an employment
• B. Dividends from shares in a publicly listed company
• C. Dividends from shares in a private company where you own 50% of the equity
• D. Rent from a property you own

Answer: (A)

Pension calculations focus on earned income—money you actively work for—rather than passive income from investments or property. Salary from employment is earned income, so it’s the income type used to determine pension contributions and benefits. Dividends from shares or rental income come from investment returns or property ownership and aren’t tied to work performed, so they’re generally not treated as pensionable earnings. That’s why salary from employment is the relevant income source for pension purposes.