Typical Final Pension Unit Price and Unit Quantity

Hunderby

Hello, I did search but can't find the answer, hope someone can advise or clarify.

Final pension pot in ££ seems to be the go to end result to aim for but I wanted to know the typical final unit price and total number of units a pension might have at the start of retirement. Is there such a thing? Is this something I should focus on assuming the unit price will hopefully increase over the years.

Thanks.

QrizB

I don't think that's a very useful way to measure things?

If I've got 1000 units of "A" and you've got 5000 units of ""B", then you've got more units. But if each unit of "A" is worth £1000 and each of "B" is worth 1p, I've got a pension worth £1M while yours is worth £50.

jimjames

Hunderby said:

Final pension pot in ££ seems to be the go to end result to aim for but I wanted to know the typical final unit price and total number of units a pension might have at the start of retirement. Is there such a thing? Is this something I should focus on assuming the unit price will hopefully increase over the years.

No it's of no relevance at all, unit prices have no connection to anything other than that fund. Importance thing is the total pot and how much you spend.

dunstonh

Final pension pot in ££ seems to be the go to end result to aim for but I wanted to know the typical final unit price and total number of units a pension might have at the start of retirement. Is there such a thing?

No.

There are around 54,000 unit linked funds (inc series & share classes).  Each will have its own unit price.  The price has nothing to do with your selected retirement age.
The number of units is just a multiplier of the unit price based on your contributions.   The more you pay in, the greater the number of units.

Is this something I should focus on assuming the unit price will hopefully increase over the years.

Most people focus on the value as that is the important thing.   

Lowtrawler

You appear to be confused about pensions. You sound like you have a Defined Contribution fund. This is simply a pot of money invested through a pension wrapper. You can hold a variety of different investments within the wrapper and when you add up the value of all these different investments, that is the value of your defined contribution fund. Like any group of investments, they can both increase and decrease in value over time.

As you approach retirement, you will want to assess how much income you will need for a comfortable retirement and whether your defined contribution fund is likely to be sufficient to meet this. If you are not familiar with retirement planning it can be daunting as you will need to assess the tax you will pay, how your income needs will change over time and how best to manage the defined contribution fund to meet your income needs and manage investment risks.

You sound like a complete beginner on this topic and so I would advise you speak to MoneyWise (the free government pension advice service) and act on the advice they give you.

Hunderby

Hi all thanks for taking the time to respond. I'll review current mindset and move away from unit quantity fixation. 

dunstonh

You sound like a complete beginner on this topic and so I would advise you speak to MoneyWise (the free government pension advice service) and act on the advice they give you.

Moneywise doesn't give advice.   It gives generic information in a limited range of areas.