Hi,
I have 2 pension pots on the go. One with a previous employer and one with my current employer.
I am no longer contributing to my previous employers scheme and have just left it in place since I finished up with them 2 years ago.
I logged in to my previous employers scheme today just to see the value. It currently sits at €51k, and their prediction of value at my retirement (age in 27yrs) says it will be worth €69k
That seems very low to me - that has it growing at a rate of 1.1% annually? Maybe I've got my calculations wrong but does that seem about right?
UPDATE:
Ive just done a bit more digging through some old statements. I think Im getting confused by what all this means, future vale of money etc!! Any advice or interpretation would be greatly appreciated!
My leavers benefit statement that I got after leaving the scheme stated my account balance at €52k (Dec 2021). They said on this statement that my future benefit would be as per below, with the following notes;
Total Projected Value € 105,378.84
Total Projected Value in today's money* € 68,854.52
*Your projected fund and pension in today's money simply shows you what your future benefit would buy you now if you took account of inflation between now and when you retire using an assumed discount rate of 1.00% per annum.
My latest statement I received today states my current balance at 50k. They said on this statement that my future benefit would be as per below, with the following notes;;
Total Projected Value (not provided on this statement, format of the statement has changed since the last one)
Your projected* fund in today’s money** €65,286
*The investment returns assumed for various assets classes for the Best Estimate Scenario, are outlined in the notes to this statement. The overall return (before charges) calculated for you is 4.25%% and this is based on your current investment fund choices. If you change your investment fund choices at any time in the future this assumed investment return may vary significantly. The Projected Value of your Retirement Account and your Projected Annual Pension above are based on investment returns after the deduction of estimated future charges. The effect of charges on the projected Retirement Account is the equivalent to a reduction in the investment return of 0.21%% per annum. The investment returns assumed for various assets classes for the Unfavorable Scenario are 1% lower than those assumed under the Best Estimate Scenario. **Your Projected Retirement Account Value and Projected Annual Pension in today's money takes into account estimated inflation between now and your normal retirement age using an assumed discount rate of 3% per year.
I have 2 pension pots on the go. One with a previous employer and one with my current employer.
I am no longer contributing to my previous employers scheme and have just left it in place since I finished up with them 2 years ago.
I logged in to my previous employers scheme today just to see the value. It currently sits at €51k, and their prediction of value at my retirement (age in 27yrs) says it will be worth €69k
That seems very low to me - that has it growing at a rate of 1.1% annually? Maybe I've got my calculations wrong but does that seem about right?
UPDATE:
Ive just done a bit more digging through some old statements. I think Im getting confused by what all this means, future vale of money etc!! Any advice or interpretation would be greatly appreciated!
My leavers benefit statement that I got after leaving the scheme stated my account balance at €52k (Dec 2021). They said on this statement that my future benefit would be as per below, with the following notes;
Total Projected Value € 105,378.84
Total Projected Value in today's money* € 68,854.52
*Your projected fund and pension in today's money simply shows you what your future benefit would buy you now if you took account of inflation between now and when you retire using an assumed discount rate of 1.00% per annum.
- The investment returns assumed for various assets classes are outlined in the notes to this statement. The return calculated for you is 2.68% and this is based on your current investment fund choices. If you change your investment fund choices at any time in the future this assumed investment return may vary significantly.
- The effect of charges on the projected Retirement Account is the equivalent to a reduction in the investment return of 0.22% per annum.
My latest statement I received today states my current balance at 50k. They said on this statement that my future benefit would be as per below, with the following notes;;
Total Projected Value (not provided on this statement, format of the statement has changed since the last one)
Your projected* fund in today’s money** €65,286
*The investment returns assumed for various assets classes for the Best Estimate Scenario, are outlined in the notes to this statement. The overall return (before charges) calculated for you is 4.25%% and this is based on your current investment fund choices. If you change your investment fund choices at any time in the future this assumed investment return may vary significantly. The Projected Value of your Retirement Account and your Projected Annual Pension above are based on investment returns after the deduction of estimated future charges. The effect of charges on the projected Retirement Account is the equivalent to a reduction in the investment return of 0.21%% per annum. The investment returns assumed for various assets classes for the Unfavorable Scenario are 1% lower than those assumed under the Best Estimate Scenario. **Your Projected Retirement Account Value and Projected Annual Pension in today's money takes into account estimated inflation between now and your normal retirement age using an assumed discount rate of 3% per year.
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