Zurich Pension Ready Reckoner

The pension ready reckoner is designed to work with your pension illustration. It will help you understand the effect of inflation on your pension savings by giving an estimate of the pension income you could get if you use your plan value to buy an annuity (a guaranteed income for life) before and after inflation. It also shows the effect taking a cash lump sum could have on how much pension income you could get.

The pension ready reckoner is not suitable if you're thinking of either:

  • taking a withdrawal from your plan and using the remaining plan value to buy an annuity at a later date.
  • taking a drawdown option.

For more information about your retirement options visit zurich.co.uk/retirement

The pension and cash lump sum values are estimates based on the assumptions shown in your illustration - they are not guaranteed.

These amounts do not take account of any tax you may have to pay.

When you buy an annuity, you can usually take up to 25% of your plan value as a tax free cash lump sum. You can choose to take more cash if you want but any cash taken above 25% will be treated as taxable income in the tax year in which you take it.

The assumed rate of inflation is 2.5%.

Your pension illustration is calculated using certain assumptions – please refer to your illustration for details of these.

If your statement shows a separate value for non-protected rights and former protected rights, don’t forget to add them together.