Is the pension calculator accurate?
The pension calculator is not a personal recommendation and is not a guaranteed value for what you might get in the future. The calculator is purely for educational purposes and is designed to provide you with an estimated projection of what your future value could be.
What assumptions have been made with the pension calculator?
Growth rate: 5.00%
Inflation: 2.50%
Fees: 0.68%
Net growth rate: 1.87%
Annual increase in contributions: 3.50%
Life expectancy: 100
Pension tax relief: 20% on all contributions
Existing pensions: ONS data based on age brackets
Current monthly contributions: annual salary * 8% (between Lower Earnings Limit and Upper Earnings Limit)
State pension: £11,600pa in retirement
What information is required for the pension calculator?
To get a pension projection with mynestegg, all you need to provide us with is your age, your annual wage and your email address. You can then tailor the projection we provide you with by amending your salary, current pension contributions, existing pension provision, desired retirement age and monthly contribution amount.
How does the pension calculator work?
The pension calculator can do three primary things:
1) mynestegg monthly contribution: we will provide you with guidance on a suitable monthly contribution to make between now and your chosen retirement age to achieve a retirement lifestyle of 2/3rds of your current annual income.
2) mynestegg one-off contribution: this is an optional contribution clients can add.
3) Your personalised calculation: you can customise all elements of the calculator to make it specific to your circumstance and your retirement objectives.
All of the above is underpinned by various assumptions and underlying calculations which you can view by looking at the 'assumptions made' section of the 'pension calculator'.
What does the pension graph show?
The graph is designed to show your projected pension value at retirement based on your current pension pots against what you could have in the future if you opened a pension with mynestegg.
What do the projected pension figures show?
There are two figures relating to your mynestegg pension. One shows the projected pot which gives you an insight into what your pension pot with mynestegg might look like at your chosen retirement age based on the monthly contribution shown. The annual retirement income is then guidance for how much you could potentially receive each year in retirement from your retirement age, assuming that you live to 100.
What do the total pension pot figures show?
There are two figures relating to total pensions. One shows the projected pot which gives you an insight into what your combined pension pot might look like at your chosen retirement age based on the monthly contribution into a mynestegg pension, your existing pension values and your current monthly pension contributions. The annual retirement income figure is then guidance for how much you could potentially receive each year in retirement from your retirement age, assuming that you live to 100.
What does the 'include inflation' toggle mean?
This shows how inflation affects the future value of your investments. The larger number is your estimated investment value at retirement without considering inflation, while the smaller number (after inflation) shows what that amount would be worth in today's money. Accounting for inflation means your money effectively grows about 2.5% slower each year.