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 3% if investment growth is 5%. For 2% growth, inflation is 1% and for 8% growth it is 5%. When converting the final fund value and income to today’s money, inflation is always assumed to be 2% 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.
State pension We’ve assumed you’ll qualify for a full new State Pension. If your selected retirement age is greater than your State Pension age, we have assumed that you will defer your State Pension until your chosen retirement age. The State Pension figure we add will be increased to reflect this.
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/partner If you are male, your spouse/partner is assumed to be 3 years younger than you. If you are female, your spouse/partner is assumed to 3 years older than you. These assumptions are based on industry standards and may not reflect your own circumstances.