(1) If you have existing pensions funds
for which you know the current value, you can include these.
Eg existing personal pension of £100pm is worth £10000
and you are thinking of a single premium of £5000, put £15000.
(2) If you have existing pensions funds
for which you know the current value, you can include these.
Eg existing personal pension of £100pm and you are thinking of an extra £150pm,
put £250.
(3) Target income is your ideal pension income
in today's terms. The calculator ignores State Pensions so bear
in mind that these will ADD to your income. Of course State Pensions
may change, but assuming the status quo:-
A Single Persons pension is circa £4400pa (and can be claimed
by both members of a married couple if they, as individuals, have
a sufficient National Insurance record). In couples where one person
qualifies and makes a claim for a Dependents pension the couple
get circa £7000pa.
EG - A DINKY couple (Double Income, No
Kids Yet - and planning to both maintain their careers even if
they do have kids) who want to retire on £19000pa should put a target income of £10000
because they will be getting circa £9000pa in State Pension,
taking them up the £19000 they want.
(4) Annuity Rates (how much pension your fund buys) vary with
age, sex, and long term interest rates. Contact your financial
adviser to discuss these in more detail. However, for your information,
we include some sample rates (valid 22 November 2006. Source -
Sharing Pensions)
- Single Persons Level Annuity
- Age 50 - 5.3% for men, 5.1% for women
- Age 65 - 7% for men, 6.5% for women.
- Single Persons Annuity with 3%pa escalation (to help deal with
inflation).
- Age 50 - 3.3% for men, 3.1% for women
- Age 65 - 5.1% for men, 4.6% for women.
- Joint - 3% escalation with a 50% survivors pension
- Both aged 50 - 3%
- Both aged 65 - 4.5%
*This calculator assumes that all
the fund is used for pension. In practice you might take some
as tax free cash.
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