How much will your pension be worth at retirement?
It’s a big question that many people ask because they need to know how much pension they’ll receive to plan effectively for their later years, but it’s not always easy to work out, especially if you have a defined contribution pension and are some years from retirement.
Our retirement calculator will provide you with a pension forecast, revealing the value of your pension pot at your desired retirement age based on any current retirement savings, how much you’re planning to contribute and compound growth of varying degrees between now and your retirement.
After the pension calculations, we’ll also show you how long that pension pot could last if you decide to fund your retirement through income drawdown, making a pension withdrawal of a fixed amount every month.
There are five major factors to consider when calculating how much your pension will be worth. These are:
Many people wonder how much they need in their pension to retire, but the answer isn’t simple because it will depend on you as a person.
For instance, most pensioners today have repaid their mortgages long before retirement. However, as people get mortgages later in life and with longer terms, future retirees could be repaying mortgages even after they’ve stopped working. That will need to be factored in when it comes to calculating how much pension income you’ll need.
Are you planning on taking lots of holidays now you’ve retired? What about paying for hobbies now you’ve got more free time?
Other factors to consider are any children and grandchildren you might have. Will you have to support any dependants, perhaps paying for higher educational costs?
Whatever your dreams, aspirations and goals for our retirement, unfortunately many of us simply aren’t saving enough into pensions to provide the comfortable retirement we deserve and so might walk away from the Pension Calculator a bit shocked!
While the pension calculator offers you a good starting point when it comes to working out how big your pension could be and how long it might last, it’s always better to get expert help and advice on your pension.
At Drewberry we’re qualified to see you through the entire pensions advice process, from where to invest your pension savings to drawing on your fund at retirement.
A good financial plan can help you make the right decisions when it comes to your finances. Make the right decisions today to build a more prosperous future.
Good financial planning with clear goals can increase your retirement income by as much as 53%. Old Mutual Redefining Retirement Survey
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as planning our finances. Below are just a few reasons why it makes sense to let us help.