Pension Pot Calculator 2018
How much will your pension be worth at retirement? It’s not always easy to work out the size of your future pension pot if you have a defined contribution pension and your some years from retirement – that’s why we have put together a Pension Forecast Calculator.
The 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.
Head of Pensions
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.
How Much Will My Pension Be Worth?
There are five major factors to consider when calculating how much your pension will be worth. These are:
- Your age now – the earlier you start saving into a pension the better
- Your chosen retirement age – the youngest age most people can access their pension is age 55, but not everyone can afford to retire this early
- How much is already in your pension – any existing savings will provide a base for future growth
- The monthly pension contributions you’ll be making – don’t forget employer contributions, if appropriate
- The growth rate you’re expecting from your investments – our calculator offers a pension forecast based on your pot growing by 2%, 4% and 6% between now and retirement. With income drawdown your pension pot stays invested after you start taking income, so we’ve also modelled the same three growth rates for your pension fund post-retirement.
It’s worth noting that an expert pensions and investments adviser such as those on the team at Drewberry can offer help and guidance on how to optimise your pension investments and boost your retirement fund.
Wealth Administrator at Drewberry
Pop all of the above details into our pension calculator to work out how much your pension could be worth at retirement and calculate how long your pension fund might last based on your desired retirement income.
Pension Pot Calculator
Your Pension Contribution Results
Using our expertise we've modelled how much your pension could be worth at retirement given how much you're currently paying in and the age at which you've indicated you'd like to retire. Assuming your current contributions remain fixed between now and your retirement, we've put together three estimations of the size of your pension pot on that date based on low growth (2%), average growth (4%) and high growth (6%) scenarios.
- Expected Retirement Age
- 2% Growth Rate
- 4% Growth Rate
- 6% Growth Rate
Your Income Drawdown Results
Given the income you'd like to receive, we've used our financial expertise to calculate how long your pension will last. With income drawdown your pension pot remains invested after you retire, so we've projected how long your pension will last based on your fund growing post-retirement by 2%, 4% or 6%.
- Required monthly income
- 2% Growth Rate
- 4% Growth Rate
- 6% Growth Rate
These calculators help but sometimes it doesn't beat talking to a human. If you
need any support please do not hesitate to pop us a call
Head of Pensions Advice at Drewberry
How much do I need to retire?
Many people wonder how much they need in their pensions to retire, but the answer isn’t simple because how much money you need for retirement depends on you as a person.
For instance, most pensioners today paid off 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 to 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?
Some people might want to release their pensions to pay for a child’s wedding or a deposit on their first home, or start a savings account for new grandchildren. These costs in retirement will all need to be factored in to your pension calculations so you can decide how much you’ll need to live on.
Many of us simply aren’t saving enough into pensions to provide the comfortable retirement we deserve, so e might walk away from our pension calculator a bit shocked!
But that’s why we built our pension contribution calculator in the first place – to try and offer a realistic pension forecast given the size of your pension pot today and how much you’re planning to save. Forewarned with that figure you can seek expert advice, such as that offered by the team at Drewberry, to try and increase your pension if you’ve found it won’t last as long as you hoped.
Wealth & Pensions Expert at Drewberry
Take 25% of Your Pension as Tax-Free cash from Age 55…
You’re entitled to take 25% of your pension as tax-free cash before you start drawing on it. You could use this to help fund costs such as those above, but the more you withdraw from your pension upfront the smaller the remaining pension pot will be. That means the monthly income you can take from your pension will also need to be lower.
There’s a pension lump sum calculation built into our pension calculator, so you can adjust the amount of money you want to withdraw from your pension at the start and see how it effects your overall income.
Also, don’t forget that if you take too much money too early, or your pension investments underperform, your pension could run out if you opt for income drawdown. What’s more, your income needs might rise as you get older and need to pay for care. Is the exorbitant cost of long-term care factored in to your pension calculations?
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Need Pension Contribution Advice?
While the pension calculator offers you a good starting point when it comes to calculating 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 same fund at retirement.
The pension calculator provides three different growth rates to model the size of your pension in the future, but much of this growth will depend on how your pension is invested.
I’ve helped many clients through their retirement planning journey, offering them regulated advice on their pension investments and retirement savings.
If you’re looking for similar help then please don’t hesitate to get in touch. You can drop us a line on 02084327333 or pop us an email your details to email@example.com.
Pensions & Investments Expert at Drewberry