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What assumptions is my retirement income based on?
What assumptions is my retirement income based on?

Learn more about the underlying assumptions our pension forecast calculator uses to predict your retirement income.

Lydia Bennett avatar
Written by Lydia Bennett
Updated over a week ago

To be able to calculate your retirement income for your Forecast tool, we’ve had to make some assumptions:

  • That your pension will grow at 5% each year, because of the way it’s invested. This 5% growth is after our 0.75% fee has been taken, but your fee will depend on the total value of your pension

  • The total value of your fund adjusts for inflation at a 2.5% rate

  • That your monthly contributions will continue, at the same amount as they are, until your selected retirement age

  • That tax relief for pension contributions will stay the same as it currently is

  • That your income in retirement is shown before any income tax liability.

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