What is a Retirement Pension Forecast?
A retirement pension forecast will tell you approximately what income you can expect from your pension in retirement.
This can be a valuable step in calculating if you are on track to realise your desired standard of living when you retire, be that in ten, twenty or thirty years’ time.
Try our pension calculator – to work out your retirement income
How do I get a retirement pension forecast?
A retirement pension forecast can be obtained from various sources, depending on the type of pension involved.
Your independent financial adviser can provide a retirement pension forecast for your occupational or company pension, or your personal pension.
Alternatively, you can request a retirement forecast from your employer, in the case of an occupational pension, or from your pensions provider, in the case of a personal pension.
Third, a pensions forecast for the state benefits you can expect, through the Basic State Pension and the State Second Pension, can be requested from the government’s Pension Service.
It is important to bear in mind that any retirement pension forecast is necessarily an estimate, and will be based on a number of assumptions, so that it is a prediction as opposed to a guarantee. Factors such as inflation, investment growth, and of course your income are subject to change and can make several forecasts over the course of your lifetime a wise strategy, to keep your pension planning on track.
Retirement pension forecast for state benefits
Many people in the middle of their working lives are surprised at the low levels of state benefits today. In the 2010/11 tax year, the Basic State Pension is £97.65 for a single person and £156.15 for a couple. The value of state pension benefits has fallen dramatically in the last 30 years. Those of us whose parents could rely on the state pension as the keystone of their retirement income are now realising that this is scarcely possible for the current generation. It is an even less likely prospect for those who still have one to two decades until retirement. For that reason, a retirement pension forecast, focusing on state benefits, can be a ‘reality check’ which factors in inflation, and reveals the likely buying power of the state pension in the future. This in turn will give a much clearer idea of what additional savings may be needed now.
Speak to one of our experienced pension advisers about your retirement income on 0800 678 5929
Or try our pension calculator to see how much pension pot you need for the retirement income you want
Retirement pension forecast for occupational and personal pensions
Working with a financial adviser, you can make a pensions forecast that can answer various questions, in relation to your plans for retirement.
You can evaluate your potential income from your pension, but also your other assets and investments, including your property. From this, you can gain a clearer perspective on options such as early retirement, or working beyond retirement age and the timing of taking up your pension, or purchasing an annuity.
In general terms, by postponing the uptake of a pension you will increase your monthly income in retirement. In addition, your health and other issues can make a considerable difference to your retirement income, if you purchase a pensions annuity. A retirement pension forecast provided by a qualified financial advisor will reveal this in detail.
