The figures we provide are estimates and are not guaranteed. What pension income you receive will depend on a number of factors including your personal lifestyle and any health conditions. To simplify our calculations, we’ve made the following assumptions:

• We’ve assumed that your pension value will grow at 5% per year if you keep it invested until you retire. It’s important to remember that a pension is an investment, and its value can go down as well as up, which means you could get less than you’ve paid in.
• We’ve used a rate of 2% for inflation which is in line with the rate set by the Financial Conduct Authority. Inflation will reduce the effect of the assumed pension value growth.
• We’ve also assumed that there is an annual management fee of 1% which will also reduce the effect of the pension value growth. Your own figure may be higher or lower than this depending on your pension provider.
• We’ve assumed that you are entitled to the full state pension. If you are unsure of your own entitlement or wish to check you can do so by clicking on the following HMRC link. Check your State Pension forecast - GOV.UK (www.gov.uk)
• We have assumed that the State Pension age will be 67, however for those people reaching State Pension Age before 2027 their State Pension Age will be slightly earlier than this. To see what your income may look like with the State Pension included please select 67+
• We have assumed that your pension is your only source of income during retirement and we have applied the current HMRC income tax bandings and rates to arrive at a net figure for your monthly and annual income. Note that the income tax thresholds and rates are different in Scotland compared to the rest of the UK at this time.
• We factor in any tax-free cash you wish to take. It’s important to note that whilst you can usually take up to 25% tax-free cash from your pension savings this will impact your overall monthly pension income when you retire. It's also important to note that you can’t take more than a quarter of your lifetime allowance (£1,073,100) which equates to a maximum tax-free cash figure of £268,275, unless you have lifetime allowance protection in place for a higher amount.
• Where you have chosen to include additional pension contributions over time we’ve assumed that these contributions will grow as your earnings increase. We’ve assumed that your earnings will grow by 2% per year and that you will continue your pension contributions until your selected retirement age. Our tool limits the amount of contributions to £5,000 per month or £60,000 annually which is the current maximum figure at which you will still get tax relief.
• The figures we’ve calculated are based on you buying an annuity that is paid monthly, in arrears, with no guarantee, no escalation and no dependents pension.
• For the purposes of the calculation, we have assumed that when you retire you will convert your pension into an annuity. The annuity rates we have used for the calculation are valid as of today but the actual rate you receive when you retire could be higher or lower than this due to prevailing market conditions and your own personal circumstances.
• The information in this section is correct as of .

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