Help with my pension illustration

worcester1

Hi guys,

Can you please tell me if I have to start worrying and look at other ways of saving for retirement?

I am 37 years old and contributing £300 p/m in my company's Global Equity Index fund operated by Legal & General.

My projection shows a £7,560 p/a pension (today’s money) at retirement age.

The return net rate for the GEI performance;

Previous 5 years = +15.2%
Previous 3 years = +10.5%
Previous 12 months = -5.5%

The assumed returned on my investment to normal retirement date is increase of 2.5% p/a

The question I want to ask can I expect to get more than the expected £7,560 and will this along with my expected state pension of £142 be enough?

Ideally I want an income of at least £15K p/a in retirement.

Thanks in advance

EdInvestor

worcester1 wrote: »

The question I want to ask can I expect to get more than the expected £7,560 and will this along with my expected state pension of £142 be enough?Ideally I want an income of at least £15K p/a in retirement.

You seem to be right on target. Have you checked what annuity features will be included in the pension projection? Quite often they include spouse pensions and index linking which may not be necessary in all cases. A level annuity with no spouse benefit will pay out a significantly larger amount.

The projected return of 2.5% ( if I understand you correctly) also looks extremely conservative, the pension should do better than that.

worcester1

EdInvestor wrote: »

You seem to be right on target. Have you checked what annuity features will be included in the pension projection? Quite often they include spouse pensions and index linking which may not be necessary in all cases. A level annuity with no spouse benefit will pay out a significantly larger amount.

The projected return of 2.5% ( if I understand you correctly) also looks extremely conservative, the pension should do better than that.

It's does include a spouse pension which is half of my projection. They also stated that projected return of 2.5% is conservative.

So what sort of pension should I expect at retirement age or if I was to retire maybe 5 years earlier?

Is the Global equity fund a good persion performer? Are there better ones out there?

Thanks

EdInvestor

You can check the size of fund required with an annuity calculator, see the Pension annuities section:

https://www.fsa.gov.uk/tables

As already mentioned elsewhere invested in one fund is not ideal.