Understanding your illustration
To help you plan your retirement, your statement includes an illustration of what taxable income you could get if you bought an annuity (a lifelong income) at retirement. This level of income isn't guaranteed and it could change between now and when you retire.
Your illustration takes inflation into account because the cost of living is likely to go up between now and when you retire. Where we make assumptions that are specific to you, we specify these in the notes in your illustration along with the investment growth rate we've assumed.
Unless we specify otherwise, we'll assume that:
- future payments (if any) will continue in line with existing payments
- future inflation will be at 2.5% each year
- you will not take any tax free cash
- you will buy an annuity that is paid for your lifetime only (and for a minimum of five years).
These assumptions may not reflect your personal circumstances. Changing the assumptions can significantly affect the estimate of how much pension you might get.
I want to make changes to my plan