Read about John

John is 64 years old and is around one year away from his Target Retirement Date.

• Last year we estimated his pension account could be worth £173,000.
• This year we estimate his pension account could be worth £183,000.

We’ve not assumed anything different about how much John earns or pays in, but the new assumptions about how much his investments will make mean we estimate he will have more when he reaches his Target Retirement Date.

We used these account values to estimate how much monthly pension John could buy. 

• Last year we estimated he could get a monthly income of £338 when he came to retire.
• This year we estimate he could get a monthly income of £975 when he comes to retire.

Remember, this is calculated on the basis that John will purchase an annuity that:

• Has a five-year guarantee
• Issues level payments to him that do not increase over time
• Provides for John solely
• Does not take his gender into consideration

Pensions that increase each year and pay benefits for a spouse on your death are generally more expensive. This is why last year John’s monthly pension was lower than the estimate for this year.

* Numbers are approximate and have been used for illustration purposes only.