A pension calculator is necessary in order to find out the projected size of your pension pot. Although an increase in the state pension is expected in 2015 which will be worth a flat rate of £140 per week, inflation will ensure that this amount retains relatively little value. A pension calculator will help you understand the amount of money you can expect to have at your disposal when you retire.
A pension calculator can also be used to see how much your income will be from your pension pot. We like to call this an annuity calculator, or income drawdown calculator.
No Calculator, No Options
There are numerous methods of investing your money once you retire. You are not longer obliged to purchase an annuity and may take income drawdown indefinitely. At one time, it was only possibly to take income drawdown until the age of 75 when an annuity purchase became mandatory. However, your options at retirement are less about the method of release than the amount of money you have saved. Using a pension calculator you can plan your retirement and ensure that you are on track to a comfortable retirement.
Once you have spoken with a financial advisor, you will be better prepared to make a decision regarding your pension. To get a rough estimate as to the final worth of your pension when you retire, you will need information such as the current value of your pension fund, your age, your salary and the age you intend to retire. This is usually enough data to come up with a reasonably accurate figure though a financial advisor will help you get closer to the mark. A financial adviser will take into account fund performance projections to produce a forecast. This can be done with a new or existing pension.
Without regular pension calculations and reviews, you could be leaving yourself at risk, without the information you need to know to track how things are going. If retirement comes and you don’t have enough money to live on with the added state pension, there will be no one to help you. Contact an independent financial advisor today in order to find out how to properly calculate and manage your pension. Fill in the form and move one step closer to financial security.