Adviser > News > August 2010 > New online pension calculators for customers
New online pension calculators for customers
We have launched two new calculators, available on the consumer homepage.
Online calculators
Let your clients see for themselves how much money they are likely to have in retirement.
These are to help customers find out how much they need to save now to afford the retirement they want in later life.
It’s a well known fact that people are not saving enough for retirement. Some will get a nasty shock when they retire and find that their income dramatically reduces and they cannot afford the basics, let alone all the holidays and leisure pursuits they had in mind.
Pensions Minister, Steve Webb recently said that around 7 million people are not saving enough to meet their retirement aspirations. Plus the basic state pension of £97 a week is "not enough to live on".1
One way to point out this shortcoming to your clients, and encourage them to save more, is to let them see for themselves the results of what they are currently saving. Both tools are straightforward to use but there are helpful tips throughout just in case they need extra instruction.
Quick calculator
Customers simply input minimum information (age, contributions, and retirement age) to produce a display of results which shows the income and tax-free cash they are likely to get in retirement.
Retirement planner
This is a more complex tool that allows customers to provide their personal details, information about existing pension plans and contributions. The customer then enters the amount of income they want in retirement and the calculator tells them whether they are likely to reach this target or fall short of it when they retire.
The customer can then do a comparison calculation by making changes to the original information that was entered. It will show the effect these changes will have on their retirement income.
More information
If you would like more information or more help to use the calculators then please contact your Scottish Life consultant.
Source:1 The Independent (29th July 2010)
For professional advisers only
