How this calculator works

This page explains each input and the assumptions used to project your pension pot and retirement income coverage.

Inputs

Calculations

  1. Salary is increased annually by the growth percentage before contributions are calculated for that year.
  2. Employer contributions remain at 8% for service up to 10 years and jump to 12% afterwards; employee and employer rates are combined each year.
  3. Future contributions equal the salary for that year multiplied by the total contribution rate. The running total is added to your current pension to estimate the pot at retirement.
  4. The selected lump sum percentage is taken immediately from the pot at retirement.
  5. The remaining funds are compared with the cost of paying the target retirement salary every year from retirement age through the selected coverage age.
  6. The “Coverage check” shows whether the remaining pot can fully cover that income stream. Any shortfall is translated into an estimated increase in employee contribution rate required to bridge the gap.

Assumptions & limitations

Use these figures as a planning aid rather than financial advice. For a full retirement plan, speak with a qualified adviser.