The assumptions we have used are:
Investment Growth
Investment growth assumptions depend on the investment options selected. The assumed annual investment growth for each of the funds available is as follows:
| Investment Fund |
Investment Growth |
Charges |
Net Investment Growth |
|
Managed Fund |
6.5% |
0.6% |
5.9% |
|
Pre-Retirement Fund |
4.9% |
0.6% |
4.3% |
|
SRI Fund |
7.0% |
0.6% |
6.4% |
|
Global Equity Fund |
7.0% |
0.6% |
6.4% |
|
Property Fund |
7.0% |
0.9% |
6.1% |
|
Bond Fund |
5.0% |
0.6% |
4.4% |
|
Index-Linked Fund |
5.0% |
0.6% |
4.4% |
|
Cash Fund |
4.5% |
0.6% |
3.9% |
| Diversified Ethical Fund |
6.1% |
0.6% |
5.5% |
Charges
A charge of (currently) 0.6% (0.9% for the Property Fund) of the value of your fund will be deducted each year to cover expenses and investment costs.
Salary Growth
Salary growth assumptions are as follows:
SMPI - 2.5% - This is the salary growth used for the Statutory Money Purchase Illustrations(SMPI)
FSA - 4% - This is the salary growth suggested by the Financial Services Authority (FSA)
Further Assumptions
What it costs to secure a pension when you retire: on retirement, your Flexible Retirement Plan fund will be paid to a pension provider of your choice (this is known as the 'Open Market Option'). For a small fee, The Pensions Trust can provide you with quotations a financial adviser - or you can use your own adviser.
The calculator uses factors based on the industry standard Statutory Money Purchase Illustration (SMPI).These factors change each financial year.
They allow for a pension that is payable monthly in advance and is guaranteed for 5 years and for the life of the pensioner after that. If a spouse's pension is selected, this pension will be 50% of the member’s pension. All pensions payable will increase in line with price inflation, limited to 2.5% a year.
Where applicable - the calculator assumes that you will remain a contributing member of the Flexible Retirement Plan to the stated retirement age.
It also assumes that you pay income tax at the basic rate, currently 20%.
Data Protection:
The Data Protection Act 1998 is designed to give individuals rights and protection in respect of the use of personal data concerning them.The Pensions Trust respects your personal information and undertakes to comply with all applicable data protection legislation.
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