Pension Projections
 

Does anyone have a half accurate method of calculating a pension projection for a Defined Contribuion scheme, taking into account incremental wage changes, assumed time to command, RPI, inlation, interest rates, average annuity rates, etc. etc.

The company only provide one based on "Standard Assumptions" which include only your current salary.

Thanks in advance. :ok:

Try this website:

pensioncalculator.org.uk

The only drawback is that it assumes RPI of 2.5% in perpetuity

Almost impossible to calculate due to the way annuity rates move etc.

Saw a newspaper article the other day that suggested your total contribution (yours and employers) should equal half your age. So a man of 30 should be contibuting 15% of earnings.

A friend of mine has another way to look at it. Assume you will work for 40 years and will enjoy a 20 year retirement thereafter. If you want a two thirds pension for 20 years, you need to contribute one third of income for 40 years.

LJ