Compound interest/accumulation/growth calculator

older_and_no_wiser

I'm curious to see what impact different growth rates will have on my pension over different numbers of years. I have a few different funds in my SIPPs and they are all using the "accumulation" versions so that any gains/dividends are re-invested back into the pot. I'm doing this because I am not planning to touch my pension pots for at least another 10 years. 

I'd like to use a calculator tool that will take my current pot value, add in my regular contribution amounts and factor in different growth rates for x years to return the notional final value. I understand that growth rates will vary over the years and I need to factor in inflation. I would just like a rough guide on what I may end up with as a result of different variables. 

As an example, I've used this compound interest calculator. It gives me all the variables I mentioned above and seems to do a good job at returning these notional final values. Is the tool accurate for a SIPP scenario?

MaxiRobriguez

The calculator you've found is fine but should only be used as a rough guide.
Remember to account for inflation, and it may be suitable to forecast poor returns for a number of years to build in some defence to your forecasts.

manetti

I think the link you have added in your post is fine for using as a guide.

One thing to consider are the fees you are being charged for your investments which can have a significant impact over a long timeframe.

If you use Excel and are willing to spend a little time learning the necessary skills (if you don't already have them) then I suspect many would advise that this is the best way to go as it will allow you to control all of the variables, as well as making comparisons easier - the main criticism of most online pension predictors are their inflexible inputs and/or their many assumptions.

older_and_no_wiser

Thanks for the responses. Yes I put in calculations for just 1%, 3% and 5% growth. Good point about the fees.

I quite like the way that calculator allows for you to account for increases in annual contributions (which I do make each year in line with inflation).

gm0

Lars Kroijer (whole of market passive investment advocate) also has some good videos on building a simple investment monitoring spreadsheet in excel and how to add statistical distributions of return and drawdown.

https://www.youtube.com/watch?v=1LUIQa5hgMg