|
(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. |
