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Profile Pensions Launches Pension Calculator

Profile Pensions, the impartial pensions advice firm on a mission to make customers better off in retirement and pension advice more accessible, has launched a Pension Calculator to help people work out how much they’ll need in retirement and if they’re on track.

The launch of the calculator follows research from the Pension and Lifetime Savings Association (PLSA) which found that 77% of people in the UK don’t know how much income they need for retirement. Additionally, Profile Pensions’ own research found that a quarter (25%) of consumers1 admit that they simply don’t know how big a retirement savings pot they’ll need to enjoy a comfortable retirement.

The calculator is designed to give people a view of the annual income they’ll need for either a comfortable or modest lifestyle at retirement, based on their responses to three simple questions. It also factors in how much the state pension will provide them with.2

By a modest retirement, this means that people will have enough to cover all their basic outgoings, such as food and utility bills, as well as their rent if they’re not a homeowner.

A comfortable retirement will give a bit more flexibility, allowing for a few meals out, overseas holidays, and other extras such as a gym membership or season ticket.

The calculator includes a sliding scale so that users can adjust their retirement age to see how this affects the overall amount they’ll need to save.

Simon Vella, CMO at Profile Pensions, says:

“Many people have no idea how much they need to save for retirement, underestimate the value of the state pension, and simply don’t know sort of income their pension savings will provide them with. That means they risk underestimating how much they should be putting away. Our Pension Calculator is designed to highlight the importance of the state pension and the role it plays, whilst making it easy to see exactly how big a pension pot you’ll need to achieve a modest or comfortable lifestyle when you retire.”

 

Notes:

1 1,804 UK adults aged 30-59 currently contributing to workplace or personal pensions were surveyed online by market research agency, Habit5 between May and June 2018 on behalf of Profile Pensions.

2 The total pension pots the calculator shows are required assume that retirement savings are used to purchase an annuity once retirement age is reached.

About Profile Pensions:

Profile Pensions is an independent whole of market pension advice firm on a mission to make UK consumers better off in retirement.

Using technology to help deliver truly impartial pension advice, Profile Pensions has helped over 30,000 people understand their pensions in more detail as well as the implications for their retirement.  They advise on over £750m worth of retirement funds for their customers focusing in the main on people with smaller pensions pots and the underserved mass market, who without pension advice, would have poor retirement outcomes.