The assumptions we have used are:
Investment Growth: The Trustees consider advice from their Actuary and decide the level of investment return (annual bonus), which may be distributed. The decision on the amount to be allocated will be based on long-term assessments and not on the latest investment results. For this calculator, we have assumed a rate of return on future Growth Plan Series 3 contributions, before deducting our charges, of 4.1% a year until you retire.
For those eligible to join Growth Plan 4, we have assumed a rate of return on future Growth Plan 4 contributions, before deducting our charges, of 6.4% each year up to 5 years prior to retirement, reducing to 4.7% by the last year prior to retirement.
Charges: Each year management costs are determined. Costs are allocated to members contributions. The rate will normally be the amount required to cover expenses. For this calculator we have assumed a rate of 0.7% a year until you retire, in respect of Growth Plan 3 and Growth Plan 4 funds.
Annual Bonus: Members of the Growth Plan who joined before October 2001 will have built up Series 1 and/or Series 2 pension benefits. Our current assumptions do not allow for any further bonuses on these benefits.
Salary Growth:
Salary growth assumptions are as follows:
SMPI - 2.5% - This is the salary escalation used for the Statutory Money Purchase Illustrations(SMPI)
FSA - 4% - This is the salary escalation suggested by the Financial Services Authority (FSA
Further Assumptions
What it costs to secure a pension when you retire: At retirement you will be able to convert your fund into a pension from the Growth Plan, or transfer it to another provider of your choice (known as an 'Open Market Option'). The calculator uses actuarially calculated retirement factors based on the industry standard Statutory Money Purchase Illustration (SMPI). The factors allow for an annuity that is payable monthly in advance and is guaranteed for five years and for the life of the annuitant thereafter. If any spouse's pension is selected, this pension will be 50% of the member’s pension. All pensions payable will increase each year in line with price inflation, limited by 2.5%, each year. These factors change each financial year.
Where applicable - That you remain a contributing member of the Growth Plan to the stated retirement age.
That you pay income tax at the basic rate, currently 20%.
Data Protection:
The Data Protection Act 1998 is designed to give individuals rights and protection in respect of the use of personal data concerning them. The Pensions Trust respects your personal information and undertakes to comply with all applicable data protection legislation.