All of these figures take into account inflation and therefore the buying power of your pension savings in today’s money. The calculator allows for annual investment growth of 2%, 4% or 8%. We have assumed inflation to be 3% for investment growth of 4% (the default). For the lower investment growth of 2%, we have assumed 1% inflation and 8% growth it is 5%. These assumptions are set by the Financial Conduct Authority (FCA) for pension projections.

The calculator assumes that you can only take 25% of your pension tax free and does not take into account personal tax positions on the income. Tax charges may apply if your annual pension contributions exceed the annual allowance, or when your pension value exceeds the lifetime allowance. Tax rules change and benefits depend on personal circumstances.

This calculator is designed to give you an idea as to how much you will need to save into a pension to achieve your desired income in retirement. This is not advice or sufficient in calculating income from a final salary pension scheme. If you’re not sure what’s the right thing for you to do, you should consider seeking professional advice. You can arrange a meeting with one of the Lathe & Co team here

All of these figures are a guide and not guaranteed.