Great value and our widest range of investment choice.
What will your pension be worth?
Plan ahead for your retirement and how much you would need to be paying in to reach the pension you would like to retire on.
How to use
- Enter your details in the open fields including current age, the age you
would like to retire and desired annual income in retirement. You can also
see the result of withdrawing a lump sum upon retirement. Current rules
allow for up to 25% of the pension to be withdrawn tax free.
- Select an average annual percentage growth for the pension assets. 7% is
often used as an illustrative longer-term return. Cumulative returns on UK
assets with dividends re-invested 1900-2006 were 9.8% per year for equities
and 5.4% for bonds. Inflation was 4% (source: ABN Amro).
- Select an annuity rate. Rates fluctuate and vary depending on your age,
sex, and whether the annuity is fixed, index linked, investment linked or
escalated annually. Annuity rate are 3.5% for a male, 3.2% for a female, based on a non-smoker, current age 50, purchase annuity at age 65, inflation-linked monthly income, with no tax-free withdrawal on commencement. (Remember, you are no longer obliged to buy an annuity.)
Visit the Money Advice Service's annuity section.
- The calculator does not account for the effect of inflation on either the
real value of your pension or asset growth. Figures are, therefore, in