You can see an estimate of your future pension savings:
- in the now:u retirement planner
- on your annual benefit statement.
We show all future estimates of your now:pensions savings in today’s money. This means we’ve adjusted it to allow for:
- how the cost of living could affect the value of your savings up to the date you retire, and
- how far your money could go in the future.
Lots of things can affect the value of your pension savings between now and when you decide to use your money. So we’ve made some assumptions to work out your future pension estimates.
Assumptions about costs, payments and inflation
We’ve made the following assumptions:
- You and your workplace continue to pay the same amounts into now:pensions as you’ve paid over the past few months.
- Your pensionable earnings (the earnings that count towards your pension contributions) increase at 2.5% a year to the date you retire.
- Costs and charges stay the same as they are today.
- Inflation will be 2.5% a year to the date you retire.
- The date you retire is your State Pension age, unless you’ve told us something different
,or updated it in now:u.
For the estimate on your benefit statement, we also assume:
- the values and investment unit prices in your benefit statement for 31 March are correct
- any payments we received after 31 March aren’t included.
Assumptions about investment
We assume your pension savings stay invested in the same plan you’re in now, taking into account any moving into different investments your plan does in the years before your planned retirement age. Find out more about how your pension savings are invested.
For statements dated 31 March 2025, we assumed the investment funds within the plans will grow at the following rates:
- now: growth fund: 6% a year
- now: retirement countdown fund: 2% a year
- now: shariah equity fund: 6% a year
- now: shariah growth fund: 6% a year
- now: shariah destination fund: 2% a year
- now: drawdown destination fund: 2% a year
- now: annuity destination fund: 2% a year
- now: higher risk growth fund: 7% a year
- now: higher risk destination fund: 2% a year
- now: lower growth fund: 4% a year
- now: lower growth destination fund: 2% a year.
For statements dated 31 March 2026, we assumed the investment funds within the plans will grow at the following rates:
- now: growth fund: 6% a year
- now: retirement countdown fund: 2% a year
- now: shariah equity fund: 6% a year
- now: shariah growth fund: 6% a year
- now: shariah destination fund: 4% a year
- now: drawdown destination fund: 6% a year
- now: annuity destination fund: 4% a year
- now: higher risk growth fund: 6% a year
- now: higher risk destination fund: 6% a year
- now: lower growth fund: 6% a year
- now: lower growth destination fund: 2% a year.
What happens in reality may be different from these assumptions.
Assumptions about how you use your pension savings
The retirement planner shows an up-to-date estimate of the total future value of your pension savings in today’s money.
It also shows an estimate of the amount of yearly income you could get if you buy a guaranteed income for life (also known as an annuity). It shows the yearly income in today’s money, assuming:
- your guaranteed income won’t increase after you buy it
- the income is guaranteed to be paid for five years, even if you die during that time, and
- your spouse or civil partner won’t get an guaranteed income for life after you die.
Your benefit statement also shows both estimates – your total future pension savings and the yearly amount if you buy a guaranteed income for life (annuity). But the estimates on your benefit statement are only current up to the most recent 31 March.
All estimates of a guaranteed income for life (annuity) are provided in line with assumptions set out in The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 and Actuarial Standard TM1 published by the Financial Reporting Council (FRC), and the amount is shown in today’s prices.
You don’t have to buy a guaranteed income for life (annuity) – other options are available – but this keeps it simple. In particular, it makes it possible to compare the estimates on your benefit statement from year to year.
No guarantees
All the future pension figures we show you are estimates in today’s money. What actually happens will be different from what we’ve assumed, so these figures aren’t guaranteed. For example, you might not use your pension savings to buy a guaranteed income for life (annuity). If you do buy a guaranteed income for life (annuity), its value depends on things like investment performance and the cost of turning your pension savings into an income, which may be different from the assumptions we’ve made here.
We can’t promise that your benefit statement, or the retirement planner, will show the actual amount of money you, or anyone else who benefits from your pension savings, will get. You could get more or less than this amount. These figures are a guide to help you plan for the future. See more in our costs and charges explained booklet.
