Why is my projected pension pot lower than my current pension pot value?

Pensions are long-term savings and your projected pension pot at retirement depends on factors such as annual contribution increases, inflation and how and when you access your pension pot.

Another key factor is how your investment funds might perform in the future. Each investment fund has its own investment objective and its own assumed investment growth rate.

If you are near to retirement, you may be invested in one of the following funds and you may see a lower projected value than your current value. This is because our projections assume an inflation rate of 2.5% each year until your selected retirement date and the assumed growth rate of these funds is lower than the assumed rate of inflation:

  • Pre-Retirement Fund – the fund aims to provide a balance between growth and capital protection.
  • Cash Fund – the fund aims to maintain the value of investments.
  • Annuity Fund – the fund aims to protect against the effect of falls in the level of annuity rates.

You can find out more about how inflation can eat away at your retirement income here.


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