Pension Shortfall Calculator
This calculator is designed to help you understand your current pension provision and what it is likely to provide you with at retirement. The calculator requires you to input various bits of information, some of which is factual (e.g. your age) and some of which you will have to choose based upon what you think might happen (e.g. what inflation will be over the term). The calculator is only as accurate as the information entered into it, but you can choose different assumptions as many times as you wish to see how this will affect the numbers.
At the bottom of the calculator the result show you what your current pension provision will provide you at your chosen retirement date, and the cost of any shortfall in achieving your desired income. It calculates the cost of providing you with your desired income over the term either (i) as a single contribution made now, or (ii) as a regular monthly premium payable over the remaining term to your chosen retirement date.
What is annuity rate?
An annuity rate for a pension shortfall calculator shows how much yearly income you can get from your retirement savings. It's set by insurance companies and is a percentage. For example, if you have £100,000 and the rate is 5%, you'd get £5,000 each year. A higher rate means more annual income. It's crucial for planning retirement finances, helping you understand how much you'll have to live on once you stop working.
Figures are for illustrative purposes only and are not guaranteed. Returns will depend on a number of factors including investment performance. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). Your capital is at risk. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
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