Retirement Planner

Can you afford to wait?

When considering saving for retirement you may have thought about how much income you will need. However, have you given any thought to whether the payments you propose to make to your plan will be sufficient to help you achieve your desired retirement income?

Why not try using our Retirement Planner? This has been designed to allow you to view the projected retirement income based on your and your employer's payments to your pension plan, against the desired income you would like to receive at retirement.

Will the payments I make achieve my desired retirement income?

Our Retirement Planner will show you any potential shortfall between your projected retirement income and your desired target retirement income.

What happens if a shortfall is identified?

You can then choose to view the effects on your desired pension income by increasing/decreasing the payments you propose to make or by altering the age at which you wish to retire.

What are you waiting for?

To view your pension projections, please click on the 'get started' button below and enter the details on the following screen. Initially, the target retirement income field will default to 75% of your gross annual salary up to a maximum target of Ł70,000; however, you will be able to alter the target income field, initial payment levels, and retirement age by overtyping the amounts or by using the sliders to increase or decrease the amounts.

The retirement age field will also default to a retirement age of 65, which will allow you the option of including/excluding the basic state pension from your projections. The earliest age from which you can choose to take your Basic State Pension is 65 if you are a male and 60 if you are a female in this illustration. If you select an earlier retirement age than this, Basic State Pension will not be included in your projections.

You may also wish to include other yearly income from a chosen age, or a lump sum payment into your pension. More information can be found in the help boxes next to these inputs.

Important notes and assumptions are detailed below this screen and the Retirement Planner screen. Please use the scroll bar at the side of the screen to view this information.

Important notes

These figures are only illustrative and do not take into account any existing pension plans that you may currently hold with Standard Life.
This illustration shows, in today's prices, the pension that might be payable when you retire. This means that we have allowed for future inflation to give you an indication of how much you would be able to buy with your pension if it were payable today.
The State Pension age is currently 65 for men and 60 for women. The State Pension age for women will increase gradually from 2010, so that by 2020 it will be 65. Between 2024 and 2046, the State Pension age for both men and women is expected to increase from 65 to 68. The retirement planner does not reflect this change, or any other future changes made to the State Pension age.
If you retire earlier than your State Pension age, your projected income on retiral will not include Basic State Pension.
The value of your investments can vary from this illustration. As such, these figures are not guaranteed.
These figures do not take into account any tax you may incur if the fund(s) in your pension plan exceeds the Lifetime Allowance. More information can be found in the Tax section below.
All firms use the same rates to show how funds may be converted into pension income.

Tax

The Government changed the tax regime for pensions on 6 April 2006. In the new regime set by HM Revenue & Customs, the maximum payment eligible for tax relief that you or a third party (excluding your employer) can make to a pension plan is the greater of 100% of your relevant UK earnings (broadly annual salary), subject to the Annual Allowance, and Ł3,600 each year. The maximum total payment, including your employer’s payment, eligible for tax relief that can be made to a pension plan is the Annual Allowance.

The Annual Allowance for tax relief on payments you, your employer and any third part can make for the tax year 2010/2011 is set at Ł255,000. Payments above the Annual Allowance will be subject to a tax charge. The annual allowance will be maintained at the 2010/11 level of Ł255,000 for a further 5 years up to and including the tax year 2015/2016. This will restrict the amount of contribution to a pension scheme that can be paid without being liable for the annual allowance charge.

There is also a Lifetime Allowance that applies to the total pension funds that are used to provide benefits to you. Payments from total pension fund(s) in excess of the Lifetime Allowance may be subject to a tax charge. The Lifetime Allowance for the tax year 2010/2011 is set at Ł1,800,000. The Lifetime Allowance will be maintained at the 2010/11 level of Ł1,800,000 for a further 5 years up to and including the tax year 2015/2016, when it will be reviewed again.

Tax rules and legislation may change. The value of tax relief may change and will depend on your financial circumstances. The information we have given is based on our understanding of law and HM Revenue & Customs practice at today's date.

Assumptions

The illustration assumes investment in Standard Life Investments’ Managed Fund which has an annual growth rate of 7%, an annual management charge of 1%, and a rebate of 0.52%.
A higher (or lower) annual management charge may apply if your choice of invested fund(s) is different. In this case, your projected income would be lower (or higher) than the figure shown here.
A lower (or higher) rebate may also apply if your choice of fund(s) is different. Your projected income would be lower (or higher) than the figure shown here if a lower (or higher) rebate applies.
The growth rate suitable for your choice of funds may also be lower than the rate used in this illustration. If a lower rate applies, the projected income would be lower than the figure shown here.
We have also assumed nil commission. If commission is payable, your projected income would be lower than the figure shown here.
When determining the values in today’s terms we have assumed inflation in the Retail Prices Index (RPI) of 2.5% each year.
We have assumed an exact number of years between your ‘age next birthday’ and retirement age, and not allowed for any partial year.
Your payments into this plan are based on a percentage of salary and are assumed to increase at 4% each year.
Your employer’s payments are based on your payments as a percentage of salary subject to a minimum payment and a notional earnings cap where applicable. See below for details on your employer’s payment structure.
The notional earnings cap for tax year 2010/2011 is set at Ł123, 600 and will increase in line with the Retail Prices Index, assumed at 2.5% each year, rounded up to the next multiple of Ł600.
Increases in the notional earnings cap and salary escalation are assumed to take place at the end of each year with the first increase in escalation being a year from the later of 1 April 2010 and the date you project your pension. This may differ from actual salary review dates.
For members making payments of 5% and above, a minimum employer payment of Ł1500 p.a. will be applied. These payments will be applied pro rata for part time employees.
Your first pension payment will be paid on your birthday during the year of retirement and will be paid every month from this date until you die.
Your pension will alter in line with the Retail Prices Index, assumed at 2.5% each year from the time you start taking it.
When you retire you will be married to someone three years younger than you (if you are male) or to someone three years older than you (if you are female).
If you die within 5 years of receiving your pension, we will continue to pay it until the end of the 5 year period.
We have assumed a State Pension Age of 65 for men and 60 for women, and a married couple’s Basic State Pension allowance assuming your spouse does not claim the Basic State Pension in his/her own right. If your spouse is entitled to a full Basic State Pension, your Basic State Pension would be less than the figure used in this illustration by Ł3042.52 per year.
We have assumed the full time working hours per week is 36 hours.

BT does not take any responsibility for the content or output of the Retirement Planning Tool provided by Standard Life

For former SLFPP (Syntegra Limited Flexible Pension Plan) members only

Your Payment (% of pensionable salary)	Your Employer’s Payment (% of pensionable salary from 1 April 2010)
2	3
3	4.5
4	6
5	8
6	8.5
7	9
8+	9

For former BTRP (BT Retirement Plan) members only

Your Payment (% of pensionable salary)	Your Employer’s Payment (% of pensionable salary from 1 April 2010)
4	6
5	8
6	8.5
7+	9

For members making payments of 5% or above, a minimum employer’s payment of Ł1500pa from 1 April 2010 will be applied. These payments will be applied pro rata for part time employees or for leavers during the year.

The notional earnings cap for tax year 2010/2011 is Ł123,600 and is assumed to increase at 2.5% each year, rounded up to the next multiple of Ł600. Your employer’s payments will be a percentage of your salary, up to the notional earnings cap.

For New Entrants (if you are neither of the above)

Your Payment (% of pensionable salary)	Your Employer’s Payment (% of pensionable salary from 1 April 2010)
5	8
6	8.5
7+	9

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This website is intended for the information of residents of the United Kingdom. Standard Life Assurance Limited (SC286833), Standard Life Bank Limited*, (SC173685), Standard Life Client Management Limited (SC193444) and Standard Life Savings Limited (SC180203) are all registered in Scotland at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Investments Limited (SC123321) and Standard Life Investments (Mutual Funds) Limited (SC123322) are both registered in Scotland at 1 George Street, Edinburgh EH2 2LL. All companies authorised and regulated by the Financial Services Authority (* except for Standard Life Bank Limited's "Buy to Let" mortgages).