Calculations are indicative only and do not take into account any existing pension provisions. They are based on the following assumptions:
- Your pension fund investments will grow by 7% a year until you retire
- An annual management charge (AMC) of 1% is deducted from your pension fund
- Tax relief is added to your contributions at the basic rate of 22%
- An estimated level annuity rate of 6% is assumed (where an "annuity" is the pension income that you buy with your pension fund on retirement). The annuity will remain level in payment and no spouse provision or guarantee is taken into account
- You keep up regular monthly payments as detailed in the calculator from now until you retire
- Each year your salary increases by a minimum of the estimated rate of inflation
- Inflation will rise at a rate of 2.5% a year until you retire
The figures are only examples and are not guaranteed - they are not minimum or maximum amounts. What you will get back depends on how your investment grows and on the tax treatment of the investment. Your retirement fund could be more or less than this. Your pension income will depend on how your investment grows and on interest rates at the time you retire. If you invest in a cash or fixed interest fund, your growth rate is likely to be lower than the 7% assumed here for an equity based fund.
Higher rate taxpayers can reclaim the higher levels of tax relief through their tax return. This is based on our understanding of current law and Inland Revenue practice at this time. Future changes in legislation and practice could affect this. |
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