How we’ve crunched the numbers

Why use the ‘Peep at the future’ graph?

If you’re thinking of investing in a Zurich Stocks and Shares ISA, the ‘Peep at the future’ graph gives you an estimate of what you might get back.

It does not provide advice and the results should not be solely relied upon when making investment decisions.

As well as reading the below information, you should also read the information on the website and the Key features of the Zurich Stocks and Shares ISA.

About the ‘Peep at the future’ graph

The ‘Peep at the future’ graph makes a number of assumptions about what you might get back when you invest in a Zurich Stocks and Shares ISA (account) at the end of your chosen term.The amount you get back will depend on factors such as:

  • what you pay in
  • how long you keep your money invested
  • the performance of the fund you choose
  • the charges taken which may vary in the future
  • whether you take withdrawals during the term of the plan.

The fund value is not guaranteed and can go down which will reduce what you get back.

The ‘Peep at the future’ graph does not allow you to see the impact of taking withdrawals from your fund.

About the information you give us

  • Only enter the amount you want to pay in (for example, add a one-off payment and/or monthly payment). The amounts must not exceed the ISA allowance for the current tax year (unless you want to transfer an existing ISA to Zurich and would like to see how this affects what you might get back).
  • Select the number of years you’re thinking of investing from a range of 5 to 20 years (in reality, there are no restrictions on how long you can hold an ISA). This allows the tool to calculate what you might get back at the end of your chosen term. If you don’t choose a term, the graph assumes you’re investing for 10 years.

How we estimate what you might get back at the end of the term

  • ‘What you could get back’ is based on ‘your total payment’, the length of the term selected (in years) and the growth rate after charges.
  • How much your ‘money might grow by’ is based on ‘what you could get back’ at the end of the term minus ‘your total payment’ over the term.
  • ‘Your total payment’ is based on the value of the one-off payment and/or the value of the monthly payments made over the selected term.

What we’ve assumed

  • The graph assumes growth rates of 2%, 5% and 8%. The assumed growth rates are consistent with the Financial Conduct Authority’s lower, intermediate and higher rates of return. In reality, the growth rate you achieve will depend on the actual performance of the fund you invest in.
  • A yearly fund charge of 0.83% and a yearly Zurich Portfolio charge of 0.40% (actual fund charges vary depending on the fund you’re invested in).

Important information

  • You’re responsible for ensuring the amount you pay into the tool does not exceed the current yearly ISA allowance unless you also want to see the effect of transferring an existing ISA to Zurich.
  • The figures in the graph round down to three significant figures. This means they may not add up exactly.
  • Over time inflation reduces the buying power of money. For example, if inflation is 2%, then in 10 years’ time, £10,000 would be worth the same as £8,200 today.
  • If you either reduce or stop making monthly payments or take withdrawals this will reduce the amount you get back at the end of the term.