Assumptions used in PensionsVault Platform

 

Important notes

Please note that PensionsVault is a self-service platform and is not automatically updated by pension providers.  Your adviser can upload current scheme information to your Vault, but this typically based on the last Benefit Statement valuation, which will not be the most up to date current value.  Therefore, regardless of the assumptions made in the projection tools, all the illustrations/graphs in the retirement tools are purely based on your estimates and cannot be relied upon.

 

About our assumptions

PensionsVault or your adviser has no way of knowing or verifying the details that you enter regarding your historic pensions, particularly overseas pensions.  This means that we have no way of knowing how these pensions are structured; what the charges are, their projected growth rates etc, so to provide you with projections we have had to use many assumptions.  The more assumptions that are used, the greater the margin for error that occurs when calculating future projections.   

 

As we have no information on your old pensions, it is our policy to use conservative assumptions in all our calculations and we follow the guidance of the Societies of Actuaries (Ire.) and Pensions Authority on producing those assumptions.

 

Assumptions:  

• All your pensions have an annual management charge of 1% pa compounded on a monthly basis.

 

• Regular premium pensions have a contribution charge of 5% pa of the contribution amount, assumed to be deducted monthly.

 

• Assumes your age as “age last birthday”, which means there can be up to 11 months variance in the projections

 

• In our calculations for your final salary, we assume an annual salary growth rate of 3%.   This does not take into account other income that you may have and does not make any provision for taxation.

 

• The investment growth rate of your pension depends on the risk profile of underlying fund in which it is invested.  The following sets out the investment growth rates we apply, depending on the risk profile that YOU have indicated.  These are subject to change.

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*All the above investment growth rates are gross, before the deduction of management charges.

*These assumed growth rates will change over time as we review activity on the platform and as the                 guidance from the Pensions Authority changes.

 

• If you are a member of a current pension that has been uploaded by your adviser, we have assumed Lifestyle strategy for your investment profile for the purposes of calculations.  The actual investment strategy may be different to this assumption.

 

• You may not be able to access all your pensions at the retirement age that you have used in the projection tool.  For example, you may project your pensions to age 60 but one of your overseas pensions may have a retirement age of 65.

 

• Pension projections do NOT take into account taxation at retirement and your pension benefit could be more or less than shown.

 

• The pension projections do not take into account other income that you may have at retirement, which can impact your income and taxation at that time.

 

• Most individuals are entitled to a portion of the pension fund at retirement in a tax free lump sum.  We do to take this into account and you will need to speak to you adviser to determine which of your pensions is eligible for tax free cash.

 

• These projections do not take into account the minimum drawdown that you maybe be subjected to at retirement.

 

Important

 

All the projections are based on estimates and assumptions and are absolutely not guaranteed.

 

Your actual figures WILL be different than indicated.

 

PensionsVault is simply your starting point to get your pensions in one place.  It is vital that you do not make any financial decision with discussing it with a financial advisor first.

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If you have any questions about any aspect of PensionsVault please contact hello@pensionsvault.ie