Investment Backsolve One Off

• Bob contributes £800 into his pension, and he expects his contributions to increases broadly in line with price inflation.
• 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 will be invested in 80%/20% proportions into the following two funds: CF Woodford Equity Income A Acc GBP (Citicode KEBA), with a fund charge of 0.1% and 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 would like to know how much he needs to transfer into his new pension arrangement to ensure that he meets his £350,000 target in 15 years time (in future values) with a 60% probability.

{
  "assets": [
    {
      "typeReference": "PCPension",
      "contributions": {
        "amount": 800,
        "frequency": "MONTHLY",
        "increase": {
          "basis": "RPI",
          "rate": 0
        }
      },
      "initialCharges": {
        "percentage": 0,
        "amount": 0,
        "contributionPercentage": 0
      },
      "annualCharges": {
        "amount": 0,
        "tieredCharges": [
          {
            "percentage": 0.45,
            "upperLimit": 50000
          },
          {
          	"percentage": 0.25
          }
        ]
      },
      "accumulationTaxationBasis": "NONE",
      "funds": [
        {
          "code": "KEBA",
          "balance": 100000,
          "contributionPercentage": 80,
          "adjustment": 0.1
        },
        {
          "code": "G6HZ",
          "balance": 100000,
          "contributionPercentage": 20,
          "adjustment": 0.25
        }
      ],
      "adjustContributions": true
    }
  ],
  "targetOptions": {
    "target": 350000,
    "taxBasis": "GROSS"
  },
  "forecastOptions": {
    "todaysPrices": false,
    "todaysPricesIndex": "RPI",
    "taxOptions": {
      "region": "UK"
    }
  },
  "backsolveOptions": {
    "term": 15,
    "probability": 60
  }
}

Results

• Bob should transfer £44,666 as the opening balance into his pension (split 80/20 into the two funds specified) in order to meet his £350,000 target in 15 years in future value with a 60% probability.

{
    "contribution": 44666.00272433946
}