pension

[petesgrayz]

I am 50 yrs old and have been paying approx �100 per month into a pension for the past 12 years. If I was to retire at 60 how much could I expect to recieve on a monthly basis.

[WendyS]

This will depend on how much money is in your pension pot at retirement date and how well your investment grows over the next 10 years. You should be receiving an annual pension statement from your pension provider. At the time you retire, if you are in a Money Purchase scheme, you will then probably have to buy some kind of annuity (although pension rules have recently changed) and the percentage rate you get per each �1000 invested will depend on bank rate and other financial factors in place at the time. It would be wise, in the years coming up to retirement to consider whether your funds could be transferred to a lower risk investment if you are worried that the stock market will take a dive at the time you want to start drawing your pension as obviously this would cause a dramatic decrease in your pension income.. Alternatively, if you are lucky enough to be in a Final Salary scheme, your pension will usually be something like one sixtieth of your salary for every year of service (and often an amount equivalent to the State Pension is deducted from this). If you are in this type of scheme your employer should have provided you with a detailed pension handbook with all the relevant information.

[scotstone]

Roughly speaking assuming 5% growth over the 22 years you would have a pot of �50000. If you did not take your 25% tax free lump sum you would get an annuity of about �650 per year per �10000 i.e 5 x �650 which is �3250 per year i.e �270 per month. However a lot could happen to growth and annuity rates over the next ten years!!