PENSION CALCULATOR
Calculate Future Pension Returns
Use this calculator to work out the future value of a pension. Find out in seconds with this free pension calculator.
Pension calculator
Our pension calculator provides an estimate of how much a client's pension fund could be at retirement and how much retirement income they may expect to receive when selecting an Annuity, Flexi access drawdown or Uncrystallised funds pension lump sum (UFPLS).
Disclaimer: Please note that this calculator is not suitable for Final Salary (defined benefit) pension schemes. This calculator will only work with a Money purchase-based scheme (defined contribution). These Pension calculators are for the use of our students and their studies. The accuracy of these tools should not be used to make financial decisions. Clarity Financial Training Ltd will not be liable to you or anyone else for any decision made or action taken in reliance on the information given by these online tools.
How much will they get? Use our pension calculator to find out.
Add together the figures from the annual statement you get from your pension provider. If you don't have this, you can call the provider and ask for the figures.
N.B: The maximum annual contribution cannot exceed £60,000 including the tax relief on personal contributions unless using carry forward.
* Please select your assumptions.
| Fund performance | Inflation | Charges |
|
Select the growth based on the FCA assumptions |
Please select the inflation rate |
Please select the annual management charge rate |
The estimated total pension fund at retirement age
xx
Based on the estimated value of the pension. On retirement the client can take 25% tax free lump sum equal toxx
The remaining fund can be used to provide an income in the form of an Annuity, Flexi access drawdown or UFPLS
Retirement income options i
Flexi Access Drawdown
Flexi Access Drawdown is an unsecured pension option on retirement. It is a higher risk strategy as the pension remains invested and can continue to fluctuate. The whole pension is crystallised, and the retiree can take the PCLS (25% of the fund) tax free and the remaining assets remain invested. The retiree can choose to take income from the fund or income and capital. Please note by taking capital the fund value will deplete. Ideal for those that want control and flexibility on the amount of income taken. This figure is based on investing the remaining amount after the lump sum and receiving a 5% income. The capital remains invested and can fluctuate, there will also be ongoing charges. For more accurate results click here.
xx
Annuity
An annuity is a secured pension option on retirement. It is a lower risk strategy as the income remains payable for life. There is no investment risk as the Life Assurance company will pay an income to the annuitant based on the value of the fund at time of purchase and the annuity rate based on the annuitant’s age. The whole pension is crystallised, and the retiree can take the PCLS (25% of the fund) tax free and the remaining fund is used to purchase the annuity. Ideal for cautious clients as the money will not run out. Income from a level annuity is vulnerable to inflation risk. This figure is based on purchasing a single life level annuity based on the annuitants age with no guarantee with the remaining amount after the lump sum. This is an irreversible decision, there is no value on death. For more accurate results click here.
xx
Uncrystallised funds pension lump sum (UFPLS)
UFPLS is an unsecured pension option on retirement. It is a higher risk strategy as the pension remains invested and can continue to fluctuate. Only part of the pension is crystallised (can select any amount up to 100%). Part of the income taken (25%) is tax free and the rest of the income is taxed at their highest marginal rate. The remaining funds remain invested and is treated as uncrystallised. The retiree can choose to take income from the fund or income and capital. Please note by taking capital the fund value will deplete. Ideal for those that want control and flexibility on the amount of income taken, also they do not need access to the PCLS all in one go. This figure is based on the total value of the fund and receiving a 5% income. The capital remains invested and can fluctuate, there will also be ongoing charges. For more accurate results clickhere.
xx