We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Alpha retirement modeller
Vonnie23
Posts: 3 Newbie
Hi there,
This probably seems like a stupid question but I am really struggling to understand a part of the Alpha retirement modeller and can't find an answer in their guidance or any other google searches.
When it gives you the estimated pension on retirement, is this based on what you have contributed to date, or does it assume that you continue to contribute at the same level until you retire?
Any help would be greatly appreciated. Thanks in advance.
This probably seems like a stupid question but I am really struggling to understand a part of the Alpha retirement modeller and can't find an answer in their guidance or any other google searches.
When it gives you the estimated pension on retirement, is this based on what you have contributed to date, or does it assume that you continue to contribute at the same level until you retire?
Any help would be greatly appreciated. Thanks in advance.
0
Comments
-
My assumption when I've looked is that it assumes you'll earn the salary you input until your retirement date.0
-
You accrue 2.32% of your gross salary per year you work. Each year the total accrued amount is increased by inflation (CPI) as measured the previous September.
You might be better off doing it yourself in a spreadsheet.If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
That does make sense otherwise it is way too good to be true...:)0
-
That does make sense otherwise it is way too good to be true...:)
Yes, indeed! Don't forget that your employer also contributes, so it's not just about the amount that you put in via PAYE.If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
Bravepants wrote: »Yes, indeed! Don't forget that your employer also contributes, so it's not just about the amount that you put in via PAYE.
What your employer and you contribute has no bearing on your final pension in Alpha. Your pension is based on your pensionable earnings each year you are in the scheme as it's a career average DB scheme.Don't listen to me, I'm no expert!0 -
Bravepants wrote: »You accrue 2.32% of your gross salary per year you work. Each year the total accrued amount is increased by inflation (CPI) as measured the previous September.
You might be better off doing it yourself in a spreadsheet.
Thanks, i will give that a go...0 -
What your employer and you contribute has no bearing on your final pension in Alpha. Your pension is based on your pensionable earnings each year you are in the scheme as it's a career average DB scheme.
Yes I know, but the OP's issue was that the amount he is predicted to get back seems to be "too good to be true" for what HE contributes.
I pointed out that his employer also contributes.
In order to fund a DB scheme money does still have to be invested somewhere, and it has to come from somewhere.If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards