This modeller provides an estimate of what income your additional contributions to the Investment Builder might secure if used to purchase an annuity to provide you with a guaranteed income for life. It uses a series of assumptions when estimating how much this income is. The assumptions are in line with current Statutory Money Purchase Illustration (SMPI) guidelines. But the results provided by the modeller don’t constitute an SMPI projection.
The estimated retirement income assumes the cost is based on:
- your income increasing in line with inflation
- payable monthly in advance
- includes a five year guarantee period on death in retirement
- no allowance for charges
- all members assumed to be married or have a partner. This includes a spouse's pension payable after death of 50%. A three year age difference between partners is assumed.
Your savings are shown in today’s money – this means your benefits are discounted back from retirement to the date of calculation at this assumed inflation rate to enable you to make a meaningful comparison.
This modeller doesn’t include the value of any:
- benefits you build up in the Retirement Income Builder
- savings you may have built up as Money Purchase AVCs with Prudential
- savings from any automatic contributions paid by you and your employer into the Investment Builder on your salary over the salary threshold.
You can use the Benefit Illustrator to estimate what your Retirement Income Builder benefits might be at retirement.