Regular contributions are assumed to increase in line with inflation and to be paid monthly in advance.
Inflation the calculator allows for annual investment growth of 2%, 5% or 8%. When calculating how regular contributions might increase, inflation is assumed to be 2.5% if investment growth is 5%. For 2% growth, inflation is 0.5% and for 8% growth it is 4.5%. When converting the final fund value and income to today’s money, inflation is always assumed to be 2.5% per year. These assumptions are set down by the Financial Conduct Authority for pension projections. The default setting is 5% and can be changed in advanced options.
Annuity rates used are based on Financial Conduct Authority rules for the calculation of a future annuity. However, if your retirement age is less than a year away, the annuity shown is calculated using current rates from a range of annuity providers. The annuities shown are assumed to be paid in advance.
Your spouse If you are male, your spouse is assumed to be female and 3 years younger than you. If you are female, your spouse is assumed to be male and 3 years older than you. These assumptions are based on industry standards and may not reflect your own circumstances, particularly if you are in a civil partnership.