Contribution calculator

How much should I invest?

As a first step, think about your lifestyle. Would you want your retirement to be as good as your life today?

What would you do with an extra 35 hours a week? A few more holidays perhaps? Days out with the grandchildren?

Don't be forced into compromising your lifestyle because of a low income when you retire. Use our contribution calculator to help you work out how much you are likely to need to invest to try to achieve the income and lifestyle that you want when you retire.

Please note that our Stakeholder Pension may offer wider options than those shown in this calculator.

Remember that any money you invest will be tied up until you take your benefits, and that the value of your pension fund may fall as well as rise.

Calculator

Your details

 
 

Your requirements (see Notes below)

Help about Retirement age
 
Help about Index your contributions
 

Please enter either your monthly/single contribution or state what level of income you would like each month/percentage of current salary.

Income at retirement

%
 
 
 

Notes

Remember your outgoings may not be as high as they currently are once you reach retirement. For example, you may have paid off your mortgage and you may receive income from other sources, including:

  • State pension
    To get a statement of your expected State Pension you'll need to complete a BR19 form, available from your local office of the Department for Work and Pensions, and send it to the Benefits Agency. Alternatively go to the following site (https://www.gov.uk/state-pension-statement).
  • Employer's pension
    Ask your previous employers or their pension provider for a statement of what any pension income with them may be in today's terms.
  • Personal pension
    If you already have a personal pension plan, ask your adviser or pension provider for a statement of your projected pension, in today's terms.
  • Other Savings
    If you have any other savings such as ISAs or unit trusts that could provide additional income in your retirement, these should also be taken into account.

Help

Back to Sex

Help: Current annual salary

This should include all taxable salary. You may also want to include any regular bonuses.

Back to Current annual salary

Help: Retirement age

You can normally take your benefits from age 55. Also, please note that the minimum term to your selected retirement date for our Stakeholder Pension is five years.

Back to Retirement age

Help: Index your contributions

Indexation means that your contribution automatically increases each year either by a fixed percentage or in line with the Average Weekly Earnings Index, which is assumed to be 2.5% for the purposes of these calculations.

Back to Index your contributions

Help: Monthly net contribution

Enter the actual net amount you would like to contribute, and the calculator will automatically add on basic rate tax relief at 20%. Each tax year you can make gross contributions of up to 100% of your relevant UK earnings or £3,600 if that is greater, and still get full tax relief. The law and tax rates may change in the future and the value of tax relief will depend on your individual circumstances.

The Annual Allowance for the tax year 2014/2015 is £40,000. It takes into account gross contributions paid by you and any contributions paid by your employer or third parties to any registered pension scheme.

In the case of final salary schemes, contribution is defined as the increase in the value of benefits for members.

If the total contributions to all of your pensions add up to more than the Annual Allowance, you will have to pay a tax charge on the amount paid above the Annual Allowance.

The Annual Allowance will not apply in the tax year in which you die or if you take your benefits on the grounds of serious ill health.

Where the total of the contributions to all of your registered pension schemes exceeds the Annual Allowance in a given year, unused allowances from up to three previous tax years may be available. The Annual Allowance for each of the three tax years before the tax year 2014/2015 is assumed to be £50,000 for this purpose. You must have been a member of a registered pension scheme in both the current tax year and the tax year(s) from which you wish to make use of any unused allowance. If you think this may affect you please contact your financial adviser.

Don't forget that higher/additional rate taxpayers can currently claim back any additional tax relief via their tax return. The minimum monthly gross contribution to our Stakeholder Pension is £20. This means that the minimum monthly net contribution is £16 (allowing for 20% basic rate tax relief for the tax year 2014/2015).

You may wish to seek financial advice on this matter.

Back to Monthly net contribution

Help: Single or one-off net contribution

You may want to start your plan with a lump sum contribution. Enter the net amount you would like to contribute. The minimum single gross contribution to our Stakeholder Pension is £20. This means that the minimum single net contribution is £16 (allowing for 20% basic rate tax relief for the tax year 2014/2015). Each tax year you can make gross contributions of up to 100% of your relevant UK earnings or £3,600 if that is greater, and still get full tax relief. The law and tax rates may change in the future and the value of tax relief will depend on your individual circumstances.

The Annual Allowance for the tax year 2014/2015 is £40,000. It takes into account gross contributions paid by you and any contributions paid by your employer or third parties to any registered pension scheme.

In the case of final salary schemes, contribution is defined as the increase in the value of benefits for members.

If the total contributions to all of your pensions add up to more than the Annual Allowance, you will have to pay a tax charge on the amount paid above the Annual Allowance.

The Annual Allowance will not apply in the tax year in which you die or if you take your benefits on the grounds of serious ill health.

Where the total of the contributions to all of your registered pension schemes exceeds the Annual Allowance in a given year, unused allowances from up to three previous tax years may be available. The Annual Allowance for each of the three tax years before the tax year 2014/2015 is assumed to be £50,000 for this purpose. You must have been a member of a registered pension scheme in both the current tax year and the tax year(s) from which you wish to make use of any unused allowance. If you think this may affect you please contact your financial adviser.

Don't forget that higher/additional rate taxpayers can currently claim back any additional tax relief via their tax return.

You may wish to seek financial advice on this matter.

Back to Single or one-off net contribution

Help: Monthly income at your selected retirement date in today's money

To use this area, imagine that you are retiring today. Enter how much income you think you would need to live comfortably, assuming for example that the mortgage is paid off and the children have left home. Alternatively you may wish to enter this as a percentage of your current salary.

Back to Monthly income at selected retirement date in today's money

Help: Monthly contribution to your plan after tax relief is added to it

This is the estimated contribution to your plan that you will need to make to achieve your requirements in retirement, this includes basic rate tax relief of 20%. Don't forget that if you are a higher/additional rate taxpayer you can currently claim back additional tax relief via your tax return. You can contribute, and receive tax relief on, up to 100% of your relevant UK earnings in a tax year, or £3,600 if that is greater. The law and tax rates may change in the future and the value of tax relief will depend on your individual circumstances.

The Annual Allowance for the tax year 2014/2015 is £40,000. It takes into account gross contributions paid by you and any contributions paid by your employer or third parties to any registered pension scheme.

In the case of final salary schemes, contribution is defined as the increase in the value of benefits for active members.

If the total contributions to all of your pensions add up to more than the Annual Allowance, you will have to pay a tax charge on the amount paid above the Annual Allowance.

The Annual Allowance will not apply in the tax year in which you die or if you take your benefits on the grounds of serious ill health.

Where the total of the contributions to all of your registered pension schemes exceeds the Annual Allowance in a given year, unused allowances from up to three previous tax years may be available. The Annual Allowance for each of the three tax years before the tax year 2014/2015 is assumed to be £50,000 for this purpose. You must have been a member of a registered pension scheme in both the current tax year and the tax year(s) from which you wish to make use of any unused allowance. If you think this may affect you please contact your financial adviser.

The calculator takes account of inflation in your target pension income when estimating the contribution you need to make.

Back to Monthly contribution to your plan after we have added basic rate tax relief to it

Help: Monthly contribution to your plan after basic rate tax relief is added to it

This is the estimated contribution to your plan that you will need to make to achieve your requirements in retirement, this includes basic rate tax relief of 20%. Don't forget that if you are a higher/additional rate taxpayer you can currently claim back additional tax relief via your tax return. Each tax year you can make gross contributions of up to 100% of your relevant UK earnings or £3,600 if that is greater, and still get full tax relief. The law and tax rates may change in the future and the value of tax relief will depend on your individual circumstances. The Annual Allowance for the tax year 2014/2015 is £40,000. It takes into account gross contributions paid by you and any contributions paid by your employer or third parties to any registered pension scheme. If your total contributions add up to more than the Annual Allowance, you will have to repay any tax relief you receive on the amount you?ve paid above the Annual Allowance. The Annual Allowance will not apply in the tax year in which you die or if you take your benefits on the grounds of serious ill health. Where the total of the contributions to all of your registered pension schemes exceeds the Annual Allowance in a given year, unused allowances from up to three previous tax years may be available. The Annual Allowance for each of the three tax years before the tax year 2014/2015 is assumed to be £40,000 for this purpose. To be able to do this you must have been a member of a registered pension scheme in the tax year in respect of which you wish to make a contribution. If you think this may affect you please contact your financial adviser. The calculator takes account of inflation in your target pension income when estimating the contribution you need to make.

Back to Monthly contribution to your plan after basic rate tax relief is added to it

Help: Required monthly cost to you

Don't forget that if you are a higher rate taxpayer you can currently claim back any additional tax relief via your tax return.

Back to Required monthly cost to you

Help: Lump sum contribution to your plan after we have added the tax relief to it

Don't forget that if you are a higher rate taxpayer you can currently claim back any additional tax relief via your tax return.

Back to Lump sum contribution to your plan after we have added the tax relief to it

Help: Projected pension fund value at your selected retirement date in today's money

This gives you an estimate of your future pension fund value in today's money, taking into account inflation at an assumed rate of 2.5% a year.

Back to Projected pension fund value at retirement in today's money

Help: Monthly pension income at your selected retirement date in today's money

This gives you an estimate of your future pension income in today's money, taking into account inflation. This will be subject to income tax.

Back to Monthly pension income at selected retirement age in today's money
 

Need help?



Key documents


You will need to download the free Adobe Acrobat Reader to view PDF files.

Please also visit the Adobe Access site should you need additional assistance reading PDF files.