How-To


Annuity Forecast How To

Request

  • Bob was born on 01/01/1965 and has £125,000 currently invested in a personal pension.
  • He earns £50,000 a year, increasing in line with inflation.
  • He contributes £500 per month to his pension.
  • He expects to increase his contributions each year, broadly in line with price inflation increases.
  • The pension fund he holds has an annual charge of: 0.45% pa for balances up to £50k; and 0.25% for funds above that. There are no other charges on the product (apart from fund charges).
  • His funds are invested: £100,000 in CF Woodford Equity Income A Acc GBP (Citicode KEBA), with a fund charge of 0.1%; £25,000 in BlackRock -Emerging Markets Equity Tracker D Acc (Citicode G6HZ), with a fund charge of 0.25%.
  • Future contributions are split 80%/20% into the two funds specified.
  • Bob wants to retire on 01/01/2030, at age 65, taking a 25% tax free lump sum and using the remaining fund to purchase an annuity.
  • The annuity required increases in line with RPI, provides a spouse pension of 50% upon Bob's death, and has a 5 year gurantee period.
  • Bob has a Defined Benefit pension of £10,000 which is payable from 01/01/2031 and increases in line with RPI.
  • He is also entitled to the full state pension due at state pension age.
  • Bob wants to know what income he can expect in retirement from terms 11 to 15 with a 50% probability.

 

{
"user": {
"dateOfBirth": "1965-01-01",
"gender": "MALE",
"stateBenefit": {
"include": true,
"amount": 8325
},
"salary": 50000,
"salaryIncrease": {
"basis": "RPI",
"rate": 0
}
},
"assets": [{
"typeReference": "PCPension",
"contributions": {
"amount": 500,
"frequency": "MONTHLY",
"increase": {
"basis": "RPI",
"rate": 0
},
"taxBasis": "GROSS",
"percentage": false,
"stopDate": "2030-01-01",
"employerAmount": 0
},
"initialCharges": {
"percentage": 0,
"amount": 0,
"contributionPercentage": 0
},
"annualCharges": {
"amount": 0,
"tieredCharges": [{
"percentage": 0.45,
"upperLimit": 50000
}, {
"percentage": 0.25
}]
},
"funds": [{
"code": "KEBA",
"balance": 100000,
"contributionPercentage": 80,
"adjustment": 0.1
}, {
"code": "G6HZ",
"balance": 25000,
"contributionPercentage": 20,
"adjustment": 0.25
}],
"annuity": {
"lumpSumPercentage": 25,
"pensionIncrease": {
"basis": "RPI",
"rate": 0
},
"spousePercentage": 50,
"guaranteePeriod": 5
}
}],
"definedBenefits": [{
"income": 10000,
"todaysPrices": false,
"startDate": "2031-01-01",
"incomeIncrease": {
"basis": "RPI",
"rate": 0
}
}],
"forecastOptions": {
"terms": [11, 12, 13, 14, 15],
"todaysPrices": false,
"percentiles": [50],
"retirementDate": "2030-01-01",
"taxBasis": "GROSS",
"taxOptions": {
"region": "UK"
}
}
}

Response

  • Bob's median income in each of the years specified is:
  • Term 11: £0, although upon retirement he will receive a tax free lump sum of £78,677.62
  • Term 12: £6,982.13
  • Term 13: £17,353.17
  • Term 14: £34,263.90
  • Term 15: £35,392.61
  • We did not set a target so the chance of meeting target is returned as null.
{
"results": [{
"percentile": 50,
"terms": [{
"value": 236032.84,
"income": 0,
"lumpSum": 78677.62,
"term": 11
}, {
"value": 0,
"income": 6982.13,
"lumpSum": 0,
"term": 12
}, {
"value": 0,
"income": 17353.17,
"lumpSum": 0,
"term": 13
}, {
"value": 0,
"income": 34263.9,
"lumpSum": 0,
"term": 14
}, {
"value": 0,
"income": 35392.61,
"lumpSum": 0,
"term": 15
}]
}],
"chanceOfBeatingTargetResults": [{
"term": 11,
"chance": null
}, {
"term": 12,
"chance": null
}, {
"term": 13,
"chance": null
}, {
"term": 14,
"chance": null
}, {
"term": 15,
"chance": null
}]
}