SW Pension Statement

kev2009

Hi,

Recently got my SW pension statement and wow...... Work give me a portal i can login to to check my payments are made, check total value, change investment and beneficiaries, what funds invested in etc etc (different from SW website, even though it is with SW), anyway here is a rough breakdown:-

SW Pension statement
13.2k annual pension assuming 25% taken tax free

Work online portal (run by 3rd party) predicts:-
65k more in total port that SW pension statement
9.7k a year pension (assuming 25% taken tax free)

Sadly it doesn't' say if this includes a % increase each year once you draw pension of it its no increase each yeah and you get the same amount every year regardless (meaning effectively the money is worth less each year as 0 growth).

Works online site allowed me to factor in a 3% annual increase once i draw pension for example.


How do they work that out? Less money in pot but i get ore per year?

Both calculators are set to my retiring at 65 so no SP included as i wont get that till 68 i believe.

Seems very strange. Neither of them are a lot when you consider i have 18% going into the pension per month via salary sacrifice / employer contribution... Going to see what it says next year as I don't believe i ever received a statement last year and had to chase for this year so will see how it compares as this SW pension actually shows clearly what i have paid in, what fund has made etc, better than the last statement i got.

Kev

dunstonh

You have to look at the assumptions used on statements and calculators. Some of the assumptions are way off the mark at the moment and focus on very very pessimistic outcomes. I have seen examples that are giving a 10th of the likely outcome and frequently see figures that are less than when the current value could provide, let alone the addition of future growth and contributions.

This is a bit of an FAQ in this section now. Indeed, this is the second thread today and at least the third one this bank holiday weekend.

ffacoffipawb

dunstonh wrote: »

You have to look at the assumptions used on statements and calculators. Some of the assumptions are way off the mark at the moment and focus on very very pessimistic outcomes. I have seen examples that are giving a 10th of the likely outcome and frequently see figures that are less than when the current value could provide, let alone the addition of future growth and contributions.

This is a bit of an FAQ in this section now. Indeed, this is the second thread today and at least the third one this bank holiday weekend.

Be interested to see a 1/10th example as it seems very odd. Presumably a combination of a crap annuity rate and a pessimistic negative growth rate perhaps? Presumably not an SMPI (real mid) growth assumption?