Find out how much you might need to save
It's annoying not having enough money. If you're about to retire, it can be frightening. Additional Voluntary Contributions could help boost your retirement income to give you a better quality of life. Find out how much you might need to save to get the income you want.
How to use the AVC calculator
Select the retirement age closest to your planned retirement age from the two options given - 60 or 65. The government and some pension schemes currently allows people to start taking their benefits from the age of 55, even if you are still working. You may be able to start taking your benefits earlier if you're in ill health or have a protected pension age. Under the terms of your scheme's contract with Prudential you are currently required to take your benefits by age 75. The amount you enter will be the amount deducted from your pay before any tax is paid on it.
For investments in the With-Profits Fund, the value of the policy depends on how much profit the Fund makes and how we decide to distribute it. A Market Value Reduction may be applied if you take your funds before retirement, and this will have the effect of reducing your fund value. Please refer to your scheme literature for more information about Market Value Reductions.
You may have the option of buying additional service or additional benefits within your main scheme depending on your scheme's rules.
Please note that if any tax free cash is taken when you take your benefits this will reduce the amount of income received.
The calculator gives four annuity options, but you are likely to have other annuity options when you come to take your benefits, such as a an Income Choice Annuity. Note you could select different income options when you take your benefits. This could increase or decrease the amount you receive.
Options 4 and 2 are based on the pensions that would change in line with RPI. Please note that for these options if there is a negative rate of RPI inflation the income will go down.
Please click the calculate button if you change any of your selections.
The calculator provides you with an estimate of the pension you could expect to obtain according to the retirement age and the level of AVC contributions you select. You can receive tax relief on your contributions subject to HMRC limits. You should confirm the maximum you can make with your main scheme trustees or scheme administrator. Find out more about tax allowances.
The growth figures you can select reflect the low, middle and high regulatory prescribed percentage growth in investments. The figures used are for guidance purposes only and are not guaranteed. They are not minimum or maximum amounts. What you will get back depends on how your investment grows and on the tax treatment of the investment. You could get back more or less than the figure illustrated. Please note that all firms generally use the same rates of growth for projections - 5%, 7% and 9% - but their charges vary. The examples take into account a yearly management charge of either 0.82% (for 5% growth), 1% (for 7% growth) or 1.17% (for 9% growth) which includes allowance for expenses, charges and other adjustments. Note the charges have been based on the With-Profits fund being selected. Charges may vary according to fund choice. Charges may also change in future and they may be higher than they are now. All firms also use the same rates to show how funds may be converted into pension income. Some of the funds within our range are expected to return less than 5% each year. The spouse/civil partner quotes are based on the spouse/civil partner being three years younger if male and three years older if female is selected.
The examples above should not be taken as a recommendation. It is for illustration purposes only. It's important to remember that the value of your fund can fluctuate and you may not get back what you paid in. Do not forget that inflation would reduce what you could buy in the future with the amount shown.
The above is based on our understanding, as at April 2013, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.
We have provided you with quotations based on three different rates of return, showing the benefits you might receive on your selected retirement date if your pension pot grows at the rates shown until the pension starts and once it is in payment.
The pension, which is taxable, will be payable monthly in advance from the day you retire. The payment of your pension will be guaranteed for a minimum of five years, even if you die between your chosen payment date and the end of this period. This means that if you die within this period we will still continue to pay your estate or beneficiaries an income for the remainder of the period. We have used these assumptions in this calculator but when you take your benefits you have the option of choosing how you would like to receive your pension income, including whether you would like to have a guarantee or not.