It is important that you take the necessary steps towards a secure financial future. To plan for your retirement, you need to know exactly how much you should save by the time you decide you'll retire. This is the reason we've created this useful pension calculator for you. We want people to have a comfortable and worry-free retirement. We want you to have peace of mind when thinking of your future. Let's see how much you can save for your retirement.
How to use our pension pot calculator
The pension calculator evaluates the value of your pension based on the basic details of your retirement plan. It looks at your age, your annual income, your contributions each month and the age you wish to retire.
You can find out how long your pension could last in retirement. You get an idea of how long your pension will last based on how much income you plan to receive.
You are also able to find out the value of your pension savings when you delay your contributions.
It is good to know the value of your pension if you potentially increase your contributions for a number of years.
What are my pension options when I retire?
Part of your retirement plan is also deciding on how to receive your private pension once it's time. You have the following options:
- You can withdraw your pension savings as income drawdown. You receive a monthly income until the pension pot runs out leaving the rest of your funds invested.
- You can purchase an annuity. This is a financial product that you buy and it guarantees a lifetime income or for a fixed period of time.
- You can withdraw a lump sum. You can withdraw 25% of your pension tax-free, while the remaining 75% is taxed at your Income Tax rate.
- You can withdraw based on a mix of the above options.
Speak to your pension provider about the options that could be available to you. It is important that you're aware of your pension withdrawal options for your retirement. You can learn a bit more about how to receive your pension here. A financial adviser can also help you make informed pension decisions and give you the guidance that you need.
Why use Raindrop's smart pension calculator
In the UK, part of your NICs goes towards your State Pension. Once you reach the State Pension age, you are eligible to receive your State Pension unless you decide to defer and receive it later in life.
However, you'll soon realise that even the full State Pension, currently £185.15 per week (2022/23), is not enough for a comfortable living. It's important that you plan and save on a private pension as well, using a pension calculator.
A retirement plan for a pension will help to give you the financial security you deserve.
Calculate your retirement income and budget, and be better prepared for the future. Have a think about your retirement options and plan your future.
Start your retirement journey with Raindrop.
Knowing exactly how much you need to save for your retirement gives you peace of mind. Peace of mind that you have the necessary funds saved up for when the time comes for you to enjoy your retirement. Make the right calculations to help build a secure retirement and start saving for your future self.