The projected pension pot and estimated pension shown on your statement are based on your funds as at April 2024 and were calculated using the assumptions outlined below.
- If you are paying contributions as a member of the Money Purchase 2003 Section or Auto Enrolment Section, or you are paying Additional Voluntary Contributions (AVCs), the level of total contributions paid over the last 12-month period will continue until your retirement. If you have recently joined the scheme and have less than 3 months of contributions the salary and contribution rate provided by Pearson is used for the assumption. In both scenarios we have assumed that your contributions will increase 2.5% each year.
- Inflation will be 2.5% every year.
- Once the pension starts, the regular income will remain level.
- Your pension will be paid monthly in advance from the date you retire for the rest of your life.
- When you retire, you buy an annuity that will not provide an income for your spouse after you die.
- We have assumed a 5 year guaranteed period for annuity payments.
- Any interest rates considered are based on the FTSE Actuaries’ Government 15 year Fixed Interest Field Index.
- The Plan will maintain its tax registration under the Finance Act 2004.
- Before retirement your pension pot will increase based on the performance and charges of the underlying funds as outlined below:
| Fund Name | Fund AMC | Growth Rate Fund |
|---|---|---|
| Annuity targeting fund | 0.04 % | 5.00 % |
| BlackRock over 15 years corporate bond index fund | 0.05 % | 5.00 % |
| BlackRock over 15 years gilt index fund | 0.05 % | 5.00 % |
| BlackRock short duration credit fund | 0.04 % | 3.00 % |
| BlackRock sterling liquidity fund | 0.00 % | 1.00 % |
| BlackRock UK equity index fund | 0.05 % | 7.00 % |
| BlackRock world (ex UK) equity index fund | 0.05 % | 5.00 % |
| Blended global equity fund | 0.12 % | 5.00 % |
| Blended index linked gilt fund | 0.04 % | 3.00 % |
| Blended multi asset fund | 0.60 % | 3.00 % |
| Jupiter ecology fund | 0.78 % | 7.00 % |
| MFS Meridian global equity fund | 0.54 % | 5.00 % |
| Columbia Threadneedle (CT) pensions property fund | 0.70 % | 1.00 % |
| Columbia Threadneedle (CT) responsible global equity fund | 0.54% | 7.00 % |
Please note:
- The figures quoted are those used for the benefit statement calculations by Aviva and exclude any additional costs.
- Please remember for all funds the rate shown is not the minimum the fund may achieve. The value of a fund can go down as well as up.
- From time to time, we may need to change the rates used in your illustration in line with new standards laid down by the Financial Reporting Council (FRD) or other applicable regulatory bodies.
- If you are invested in a Lifecycle Option, the illustration makes an allowance for the different funds which you will be switched into in the future.
Please remember that the pension you actually receive may be very different from the amounts shown on your benefit statement. Your actual pension will depend on many things, including:
- Your retirement date and any payments made into and out of the Plan;
- Any HMRC limit on contributions and any tax charge that may apply. The illustration does not allow for such a limit or tax charge;
- The way your payments are invested and the growth of the fund or funds you invest in;
- The cost of buying your pension when you retire and whether you take any tax-free cash sum that might be available;
- The type and frequency of pension you buy, whether it increases yearly, and whether it provides a pension for your spouse when you die; whether you take your pension as cash, income or draw down or a combination of some or all of these options.
The assumptions can change each year. To view the assumptions for previous years, please click on the links below:
