Pensions & retirement

Retirement calculator

Pensions remain one of the most tax efficient ways of investing for retirement. But how much and for how long should you invest? More importantly, what level of income will you need for the retirement you aspire to.

This tool allows you to test a few scenarios. Whatever sort of retirement you are looking for, our financial planners will first invest in understanding what’s important to you.

For sliders, you may directly input a value or use slider to adjust the value.

Retiring in 30 years from now in 2056, when your are 55
 
99
55

Your pension

 £ 
per annum £
You are contributing £0.00 per month
 
100%
0%
Your employer is contributing £0.00 per month
 
100%
0%
Your wish to retire with an income of £0.00 per year
 
100%
0%

Set the level of investment risk

  • Very Low
  • Low
  • Low to Moderate
  • Moderate
  • Moderate to High
  • High

You are averse to risk and therefore not comfortable with significant investments in your portfolio which might put your capital at risk.

Preservation of your capital is very important to you and you would like to maintain the real value of your investments against inflation. Your portfolio will typically have some exposure to equities and a proportionately higher exposure to fixed income investments, at least some of which will contain market exposure.

Expected net return
4.25% per year. This is the illustrative annual rate of growth before fees and inflation have been taken into account.

You are not comfortable with having the majority of your portfolio in higher risk investments such as equities.

Capital preservation is important to you and you would like to maintain the real value of your investments against inflation. Your portfolio is likely to be more evenly balanced between equities and fixed income investments.

Expected net return
5.07% per year. This is the illustrative annual rate of growth before fees and inflation have been taken into account.

You would like a significant proportion of your portfolio to be in higher risk investments and you are willing to accept a greater short term potential for losses from your overall portfolio, in order to generate potentially higher long term returns.

Your portfolio may typically have a higher exposure to equities than fixed income investments and is likely to have low to moderate levels of market volatility.

Expected net return
5.63% per year. This is the illustrative annual rate of growth before fees and inflation have been taken into account.

You are prepared to have the significant majority of your investments in equities in order to achieve higher returns at the expense of greater risk to your capital.

Your portfolio will typically have a substantially higher weighting towards equities than fixed income investments and is likely to have moderate market volatility.

Expected net return
6.18% per year. This is the illustrative annual rate of growth before fees and inflation have been taken into account.

You would like to have the opportunity for large scale returns and you are comfortable with having a larger proportion of your capital at risk, and accept the possibility of larger short term losses, in order to achieve your long term investment aims.

Your portfolio will typically have a very high weighting towards equities and very low levels of fixed income investments. Your portfolio is likely to have moderate to high market volatility.

Expected net return
6.88% per year. This is the illustrative annual rate of growth before fees and inflation have been taken into account.

You would like to have the opportunity for high returns and you are prepared to accept the possibility of a significant loss of capital in order to achieve these greater potential returns.

Your portfolio will typically be almost exclusively invested in equities. Your portfolio is likely to have high market volatility.

Expected net return
7.45% per year. This is the illustrative annual rate of growth before fees and inflation have been taken into account.

Projected value (mid range)

£

Target pension pot

£

Projected Income at 4%

£ per annum
or
£ tax free cash; plus
£ per annum

Target Income

£ per annum

Shortfall on your target*

£ per annum; which equals to additional funds of

£

*Based on assumption no tax free cash is taken.

 

Your estimated income in retirement of £ per year

The shortfall stated, and the indicative figure for when the fund could run out are based on the assumption that no tax free cash has been taken from the fund. If you did take a tax free cash lump sum from the fund, the fund could run out significantly sooner than stated, and the required fund to deliver your desired income would be higher.

 

You can redraw this chart by adjusting the figures above. Click the Start button to recalculate and update the chart.

 

Contact one of our pension specialists

Assumptions used:

Based on your chosen level of risk, the illustrative value is based upon the following assumptions

  • Volatility (Risk)
    10.30% this indicates how much the returns might vary from the expected return each year.
  • Inflation
    Inflation (increasing cost of living) means that you may need a larger income than you would need if you retired today. To allow for this, your target has been shown to increase over time by 2.5% per year. This calculator assumes that contributions will remain the same throughout the plan.
  • Income in retirement
    5% per year

    The assumed rate for the level of income in retirement of 4% per annum is not designed to provide an indication of the current or future annuity markets. This is an example figure for illustrative purposes only. It does not take into account the possibility that your funds remain invested after you start to take an income. If you do remain invested post retirement and the funds do not provide returns of at least 4% per year then your funds will be depleted over time.

    The growth rates used to show your projected fund and income are based on our assumptions for mid-range value in relation to the state risk level. These are for indicative purposes only and as detailed by the graph above, the level of investment return could be lower than the projected fund and income shown. If the returns and/or rate of income achieved in retirement is lower than those figures shown above, the level of sustainable income available to you in retirement could be lower than the figures shown above.

Other things to consider:

The aim of this calculator is to give you an indication of how much you need to contribute to a pension, and a broad idea of what income you might get when you retire.

This calculator should not be regarded as personal advice, and therefore you should seek formal advice from an independent financial advisor and one of our pension specialists can help you in this regard.

Investment returns are not guaranteed and could be significantly more or less than those used here. Past performance is not a guide to future returns. The value of investments can fall as well as rise, so you may get back less than you invest.

The final pension value and the income you receive will depend upon a number of things, that can change over time:

  • the growth your fund achieves
  • the contributions you make in the future
  • charges
  • inflation
  • when you chose to retire
  • annuity rates at the time (if you choose to take an annuity)
  • the format you choose to take your pension (e.g. as an annuity, or via Flexi-Access Drawdown)
  • the rate of income tax your pension is subject to (this calculator does not take account for income tax on your final pension income)
  • other charges that you might incur such as Lifetime Allowance, or Annual Allowance tax charges (also not accounted for)

This calculator is designed to look specifically at the projected value of your pension. Your actual retirement will also depend upon:

  • your savings and investments
  • your state pension forecast
  • any final salary benefits you may also receive
  • other sources such as rental income or inheritance
  • your health

At Brewin Dolphin, we take a holistic approach to financial planning. Our Pension Specialists will be able to provide a more comprehensive assessment of your retirement planning needs.

Disclaimer

Please note that this page was prepared as a general guide only and does not constitute tax or legal advice. While we believe it to be correct at the time of writing, Brewin Dolphin is not a tax adviser and tax law is subject to frequent change. Tax treatment depends on your individual circumstances; therefore you should not rely on this information without seeking professional advice from a qualified tax adviser.

No investment is suitable in all cases and if you have any doubts as to an investment's suitability then you should contact us.

How can we help?

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