Pension

[Martybhoy007]

How much would I receive per month if I had a £15k pension and it matured in 2036?

[SirOracle]

Impossible to say as too far into the future. Nobody can predict with any accuracy fifteen years ahead.

[Martybhoy007]

I mean in the current climate. Sorry.

[factor-fiction]

Is that the value of the fund?
If so, are you still adding to it?
If not, it's best just to consider everything at current day prices (assuming the fund growth after expenses broadly matches RPI).
A £15000 fund at age 65 may give an annuity of less than £700 a year at current day values

[SirOracle]

I hope that your crystal ball is not too clouded Factor Fiction. :)

[factor-fiction]

I've tried to avoid any crystal ball gazing- I'm just looking at what a £15000 pension pot would generate now for someone retiring today at around age 65. The figures are just estimates though- it's better to use an annuity forecast site- and it depends on whether Martyboy wants the pension to increase each year with inflation or a spouse's pension

[Martybhoy007]

I've stopped it at £15000 and it matures when I am 55 which will be in 2036. So was just wondering how much I would receive at today's current rate.

[factor-fiction]

If you take it at age 55 the regular payments will be even smaller. I estimate £400-£500 a year at current values, but it may be less. Look on an annuity calculator site- e.g. Legal & General- for an idea.

[ubasses]

http://thisismoney.williamburrows.com/rates/acalcs.aspx?ico=moneypensions^editors_choice

[factor-fiction]

This suggests £399 pa
http://www.legalandgeneral.com/annuities/pension-annuity/annuity-calculator/

[Peter Pedant]

You can't afford to stop contributing to your pension
or else you will spend your retired life in penury/ on the bread line.

These figures are just about correct.

[Martybhoy007]

But my parents are millionaires. I'm just going to give it to charity

[factor-fiction]

lol. Well you can't draw it as a lump sum to give to charity- you can take 25% of it as a lump sum but the rest will be used to give you a modest income which you can give to charity if you wish