Our specialist retirement and pension planning team provide advice tailored to you. We’re here to help every step of the way. Click here to arrange your free introductory call with an Independent Financial Adviser today.
How our Pension Forecast Calculator Works
Work out how much your pension pot could be worth in retirement based on your contributions, how long you’ll be saving for and how you’ll be investing your money.
Tell our calculator:
- how many years you have until retirement
- how much you’ll be saving (either monthly or yearly)
- whether you’ll be increasing your contributions every year
- how you’d like your pension pot to be invested (choose from 6 pre-selected investment strategies or build a custom investment strategy)
and it will tell you how much your pension pot might be worth by the time you retire.
Adjust your pension contribution levels to see what effect that might have on your pension pot value in future years. if you want to see how your investment choices might affect your future pension value you can even select different investment portfolios for your pension.
Other calculators assume a fixed return on your investment every year. But that’s not what happens in the real world, Investments go up and down, and markets fluctuate. This calculator uses over 100 years of UK market data to give you a realistic forecast of how much your pension could be worth over time.
Our pension forecast calculator uses historical market data to give you a general idea of how your pension pot would have grown over time in different market conditions. It will show you a simulated high and low pension pot value to show you how your pension pot would have performed in the best and worst investment periods. The average final balance takes an average across all of the simulated investment periods.
This pension forecast calculator is meant to be used as a guide.
How Much Will my Pension be Worth?
The value of your pension at retirement will largely depend on
- how much you pay in
- investment term (how long you’re paying in for)
- how you choose to invest your money
This calculator allows you to adjust all of these factors so that you can see how much your pension will be worth using different scenarios i.e.
- paying more or less into your pension every month,
- paying in for longer or shorter periods
- choosing different investment strategies
How you choose to invest your money should be in line with your tolerance for risk. You shouldn’t be encouraged to take more risk than you are comfortable with to try and reach your retirement goal faster or to try and make up for lower pension contributions.
User Guide for our Pension Forecast Calculator
1) Years to retirement
Enter your years to retirement. subtract your current age from your desired retirement age. If you plan to retire when you can take your state pension, the state pension age is changing and may be different depending on when you were born. Check your state pension age here.
2) Value of existing pension pots
Enter the total value of your existing pension pots include all defined contribution pensions, this might include workplace pensions from your existing and previous employers and any private personal pensions SIPPS etc that you may have. Don’t include defined benefit or final salary pensions in this figure as they accrue value differently.
3) Contribution frequency
Choose whether you will pay an annual amount or monthly contributions into your pension. if you have a workplace pension it’s likely that your pension contributions will be taken monthly.
4) Contribution amount
Include the amount that you’ll be paying into your pension. If you are trying to work out how much your workplace pension will be worth then you’ll want to include any employer contributions as well.
5) Annual increasing contributions
This field is optional but it gives you the option to add an annual increase in pension contributions. this allows you to account for inflation and/or pay rises.
6) Contribution term
If you do not wish to make pension contributions every year until you retire you have the option in this field to stop contributing after a certain amount of years. The calculator will then show you the total value of your pension pot based on the contributions that you plan to make.
7) Your portfolio
Pension pots are invested with the goal that their value will go up over time. How your pension is invested will affect the potential returns that you may get. More aggressive investors will seek higher potential growth in their investments Accepting higher potential risk. Cautious investors will have lower risk but may not achieve such high potential growth. Balanced investors sit somewhere in the middle.
This pension forecast calculator also lets you see how much your pension pot would be worth if you chose to invest solely in stocks, bonds or cash and it also allows you to choose your own custom mix of the three.
How You Can Use Our Pension Forecast Calculator
You can use a pension forecast calculator to estimate the value of your pension pot at retirement. It will take into account not only your pension contributions but also estimated investment growth.
You can adjust the following variables:
- monthly/annual pension contributions
- the value of your existing pension/s
- how long you’ll be saving for
- investment portfolio
You can also use our calculator to see how different investment strategies will affect the final value of your pension pot at retirement.
If you know how much money you need in retirement then you can see if your current rate of savings coupled with your investment strategy/ risk profile will enable you to reach your retirement goal.
Use our retirement cost calculator to work out how much you need to retire.
Read more in our handy guide: how much you need to retire.
You can adjust your contribution term to see how this might affect your pension pot value at retirement i.e. how saving for a longer or shorter period of time might impact how much money you have in retirement.
About our Retirement Forecast Calculator
This calculator is NOT a Monte-Carlo simulator in that it does not generate any fake or random data. Instead, this calculator uses historical data and forecasts against it. Essentially it replays what happened in each of the years in the dataset and then summarizes the results.
For a 30 year savings period, this calculator will run a simulation from 1928 to 1958, then it will run a simulation from 1929 to 1959, then from 1930 to 1960, and so on. In simulations that go beyond the present year, it will wrap back to 1928 and count up from there. In this sense, the effect of the great depression is factored in for early and late starting years.
Each individual simulation computes returns by stepping through the years (eg 1928, 1929, … 1958) and performs the following each year:
- Calculates the change in value in the portfolio.
- Adjusts the annual withdraw amount for inflation based on the CPI (consumer price index) for that year.
- Updates the portfolio balance by adding the change in value and subtracting the withdrawal amount.
- Rebalances the portfolio.
Our pension forecast calculator will help you understand the likely value of your pension pot at retirement based on your contribution level. Remember that this calculator is based on historical UK market data and that past performance is not an indicator of future returns. What it offers is a chance for you to stress test your retirement plans against numerous market conditions.
You can see how different retirement savings plans would affect your pension. Including how:
- A longer or shorter savings period might affect your pension pot size
- Higher pension contributions might impact the size of your pension pot at retirement
- Your investment choices could affect the value of your pension pot at retirement
How is Pension Contribution Calculated?
If you have a workplace pension then chances are you will be entitled to employer pension contributions. The changes to auto-enrolment rules mean that from April 2019 If you earn over £512 a month your employer pays a minimum pension contribution of 3%, you as an employee will pay 5%, so you’ll pay a minimum 8% pension contribution in total.
These are the minimum standards set by the government. You should check with your employer to find out what pension contributions they pay and whether they are linked to your employee contributions, sometimes employers will match your contributions up to a certain amount.
How Much Will You Need to Retire?
Planning your expenses in retirement can be a daunting task, especially if you’re planning years ahead, so we’ve created the world’s easiest retirement calculator to help you work out how much you’ll need. We also cover 3 simple ways to work out how much you need in retirement in our cost of retirement blog.
We’ve also compiled some industry estimates for what you’ll need in retirement here>>
How Much Should You Save for Retirement?
Ultimately, tools like these are not detailed enough to base your retirement plans on, although they are a good place to start.
How much you need to save is relative to the amount of income you want in retirement, what age you plan to retire at, how much you can afford to save (and for how long) as well as your investment choices and risk profile.
We recommend that you talk to a financial adviser who can help you build a retirement plan based on your unique circumstances and goals.
Pension Forecast Calculator Assumptions
This calculator does not account for investments fees. This calculator does not take into account any State Pension you may receive. Cash figures are based on the Bank of England base rate – interest added annually using end of year interest rate.
Bonds figures 1900 -2014: Barclays Equity Gilt Study 2016 using the Gilt index, the index has been constructed to represent a portfolio of 15-year par yielding gilts. In this study, total returns are calculated assuming income is reinvested at the end of the year. Bonds from 2015: iShares Core UK Gilts UCITS ETF, this Fund seeks to track the performance of an index composed of Sterling denominated UK government bonds, yield reinvested into total return. The total expense ratio of this fund has not been included to reflect the fact that an investor holding a gilt directly would not pay this charge.
Stocks from 1900 – 2015: Barclays Equity Gilt Study 2016 using UK Stocks from 1900 – 2015, in this study, total returns are calculated assuming income is reinvested at the end of the year. After 1985 we have used FTSE All-Shares total return See: http://www.swanlowpark.co.uk/ftseannual
Cost of living index uses Barclay’s Equity Gilt Study 2016, UK Cost of Living Index from 1900- 2014. For 2015 and beyond it uses http://www.swanlowpark.co.uk/retail-price-index
Again, this calculator uses backtesting. Past performance does not guarantee nor indicate future results.
HOW AN IFA CAN HELP YOU
An Independent Financial Adviser can help guide you through life’s major decisions in a number of areas
SIPPs, Flexible Drawdown, Tax-Free Lump Sum, let our experts talk you through your options at retirement and help you meet your goals
Wealth Management & Investments
Make your money work harder for you. Invest tax-efficiently and spread your risk effectively. Our investment experts can help you build a long-term investment plan.
Whether you’re consolidating for ease, preparing for retirement or trying to reach your financial goals through a Pension Transfer, we can help. We’re specialists in this field with over 15 years of expert experience, so you’ll be in safe hands.
This pension forecast calculator is provided for general information purposes only. It is a guide and does not reflect the actual amount that you will need in retirement.
Any information contained within this website should not be deemed to constitute financial advice, and should not be relied upon as the basis for a decision to enter into a transaction, or as the basis for any financial or investment decision. It is provided for general information and it is vital (and in most cases a regulatory requirement) that you contact a Financial Adviser for tailored professional advice in regard to pension and retirement planning.
- No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.
- If you are a member of a pension scheme with safeguarded benefits, it is likely it would be in your best interests to retain the safeguarded benefits.
- Make sure you understand all the risks before investing.
- The value of investments and the income they produce can fall as well as rise and you may not get back your original investment. Past performance is not a reliable indicator of future results.