• I want my pension savings to provide me with the lifestyle I want in retirement

  • Topping up your pension

    To get the income you want in retirement it's important to regularly review the amount you're contributing towards your pension savings. Inflation steadily erodes the value of your contributions so it's important that you stay ahead of the game.

  • Making a difference by topping up

    The following examples demonstrate the difference made to the value of your pension savings by increasing the regular contributions or making a one off single contribution. These are examples and the actual fund value and available pension may be less than illustrated because the growth rate is not achieved or annuity rates are lower at the time the income is arranged

    Increase in regular contribution

    Age
    Current regular contribution after tax relief
    Current value
    Selected retirement age
    Value at retirement assuming current growth rate (4.5%)
    Increase in regular contribution after tax relief
    Value at retirement assuming revised contribution at current growth rate (4.5%)
    50
    £100 each month
    £100,000
    65
    £134,000
    +£150 each month
     £161,600

     

    In the above example, increasing contributions by £150 each month (after tax relief) could increase your pension by over £28,000. If you converted this to a guaranteed income for life it would mean an increase in the amount you’d get, from £4,530 each year to £5,500 - assuming 25% of your pension was taken as a tax free cash lump sum. 

    This is an increase of almost £1,000 every year for the rest of your life.

    Single contribution example

    Age
    Current regular contribution
    Current value
    Selected retirement age
    Value at retirement assuming current growth rate (4.5%)
    Single contribution
    Value at retirement assuming revised contribution at current growth rate (4.5%)
    50
    £0 each month
    £100,000
    65
    £114,000
    £12,000
    £128,000

    In the above example, making a single contribution of £12,000 could increase your pension by £14,000. If you converted this to a guaranteed income for life it would mean an increase in the amount you'd get in, from £3,880 each year to £4,350 - assuming 25% of your pension was taken as a tax free cash lump sum.

    This is an increase of almost £500 every year for the rest of your life.

    Regular and Single contribution example

    Age
    Current regular contribution
    Current value
    Selected retirement age
    Value at retirement assuming current growth rate (4.5%)
    Increase in regular contribution after tax relief
    Single contribution
    Value at retirement assuming revised contribution at current growth rate (4.5%) 
    50
    £0 each month
    £100,000
    65
    £114,000
    +£150 each month
    £12,000  £176,100


    In the above example, increasing contributions by £150 (after tax relief) and making a single contribution of £12,000 could increase your pension by £62,100. If you converted this to a guaranteed income for life it would mean an increase in the amount you'd get, from £3,880 each year to £5,970 - assuming 25% of your pension was taken as a tax free cash lump sum.

    This is an increase of over £2,000 every year for the rest of your life.

    These examples are for illustrative information purposes and should not be relied upon for your own personal circumstances.

    • These calculations are based on any increases in contributions (including single contributions) being made on the example person's 50th birthday.
    • We have assumed the annuity income will be paid monthly in advance, with a five year guarantee and no spouse element. The figure provided does not take into account the tax that may be due on annuity payments.
  • Getting financial advice

    It's important to discuss your retirement options with a financial adviser. They'll be able to help you decide on the right thing to do for your personal circumstances. If you don't have a financial adviser we've outlined reasons why you might benefit from using one and how to find one local to you.