(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.
This calculator, and the figures
shown by it, are for illustrative purposes only and
should not be relied on. For more detailed information
based on your own circumstances, please speak to
your financial adviser. |
