How-To
Drawdown Forecast
- 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 income drawdown.
- Bob has a Defined Benefit pension of £10,000 (in today's prices) 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 would like an income of £40,000 in retirement (increasing in line with inflation) and would like to know his projected income for terms 11 - 25.
Results are in today's values.
{
"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
}
]
}
],
"targetOptions": {
"target": 40000,
"increase": {
"basis": "RPI",
"rate": 0
},
"taxBasis": "GROSS"
},
"definedBenefits": [
{
"income": 10000,
"todaysPrices": true,
"startDate": "2031-01-01",
"incomeIncrease": {
"basis": "RPI",
"rate": 0
}
}
],
"forecastOptions": {
"terms": [
10,
11,
12,
13,
14,
15,
16,
17,
18,
19,
20,
21,
22,
23,
24,
25
],
"todaysPrices": true,
"percentiles": [
50
],
"retirementDate": "2030-01-01",
"taxBasis": "GROSS",
"taxOptions": {
"region": "UK"
},
"lumpSumPercentage": 25
}
}
Response
Response is then:
- Bob's median (50th percentile) income in each of the years specified is:
- Term 10: £0, although upon retirement he will receive a tax free lump sum of £44,652.8
- Term 11: £40,000
- Term 12: £40,000
- Term 13: £40,000
- Term 14: £40,000
- Term 15: £34,513.28
- Term 16 and onwards: £18325
{
"results": [
{
"percentile": 50,
"terms": [
{
"value": 178611.2,
"income": 0,
"lumpSum": 44652.8,
"tax": 0,
"term": 10
},
{
"value": 91978.83,
"income": 40000,
"lumpSum": 0,
"tax": 0,
"term": 11
},
{
"value": 62332.88,
"income": 40000,
"lumpSum": 0,
"tax": 0,
"term": 12
},
{
"value": 39303.23,
"income": 40000,
"lumpSum": 0,
"tax": 0,
"term": 13
},
{
"value": 17051.95,
"income": 40000,
"lumpSum": 0,
"tax": 0,
"term": 14
},
{
"value": 0,
"income": 34513.28,
"lumpSum": 0,
"tax": 0,
"term": 15
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 16
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 17
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 18
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 19
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 20
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 21
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 22
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 23
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 24
},
{
"value": 0,
"income": 18325,
"lumpSum": 0,
"tax": 0,
"term": 25
}
]
}
],
"chanceOfBeatingTargetResults": [
{
"term": 10,
"chance": 95
},
{
"term": 11,
"chance": 95
},
{
"term": 12,
"chance": 92
},
{
"term": 13,
"chance": 77
},
{
"term": 14,
"chance": 62
},
{
"term": 15,
"chance": 45
},
{
"term": 16,
"chance": 35
},
{
"term": 17,
"chance": 27
},
{
"term": 18,
"chance": 21
},
{
"term": 19,
"chance": 16
},
{
"term": 20,
"chance": 12
},
{
"term": 21,
"chance": 10
},
{
"term": 22,
"chance": 8
},
{
"term": 23,
"chance": 7
},
{
"term": 24,
"chance": 6
},
{
"term": 25,
"chance": 5
}
]
}