This Retirement Planner carries out approximate calculations based on the information you put into it, and on assumptions about things that will happen in the future that are uncertain – for example salary increase, or future investment returns on your pension pots
As the Retirement Planner does not intend to provide precise and fully accurate answers it is important that you understand that the information it provides is approximate and designed to give you a broad understanding of what your retirement income might be. As you get closer to retirement, some of the assumptions and approximations may mean that the information produced is less accurate, at which point you should consider contacting each of your own pension providers for more accurate information.
Assumptions relating to Unilever UK Pension Fund ("UUKPF")
- The Retirement Planner assumes that you remain a contributing member of the UUKPF until the retirement age you have selected (even if this is after your normal retirement age & ignoring any service cap that applies).
- The Retirement Planner assumes that benefits building up in UUKPF in the future remain unchanged until the retirement age you have selected
- If you joined UUKPF before 1 October 1987 you have the option to stop contributing to the plan from age 60. The Retirement Planner assumes that you have not / will not take this one off option and will continue contributing to the Career average plan until the retirement age selected.
Any Investing Plan pot is assumed to be used at retirement to provide a guaranteed income for life through buying a guaranteed pension from a pension provider (an “annuity”). The Retirement Planner estimates the amount of the annuity by using an approach that is similar to current pension legislation called Statutory Money Purchase Illustration (SMPI) guidelines, but the results to not constitute an SMPI projection. The pension provided in this way is assumed to:
- Increase in payment in line with inflation
- Include a 50% spouse's pension payable after death
- payable monthly
- Is based on females being 3 years younger than their male partners
- The Retirement Planner ignores the impact of any restrictions due to Annual Allowance or Lifetime Allowance rules.
If any of these assumptions do not reflect your own situation, then you should consider seeking more information from UUKPF (see contacts)
Assumptions relating to other sources of retirement income
Other DB pensions
- The Retirement Planner assumes that any DB pension amount entered on the “Other DB Pension” section, will increase between the relevant statement date and retirement in line with future price inflation.
Any Other DB Pension brought into payment at an age other than the relevant normal retirement age, will be adjusted as follows
- Reduced by 5% pa for each year it is paid early
- Increased by 5% pa for each year it is paid late
Other DC pensions
- Any other DC pot is assumed to be used at retirement to provide a guaranteed income for life through buying a guaranteed pension from a pension provider (see notes above for the Investing plan pot).
- Any other savings are assumed to be used to provide income in retirement by spreading the amount equally over 25 years from the selected retirement age.
Fixed financial assumptions
- Future price inflation is assumed to be 2.5% pa up to retirement.
- Salary increases are assumed to be in line with future price inflation and are therefore 2.5% pa.
- The Lower earnings limit used in the Final salary plan benefit calculation is assumed to increase at 0.5% pa below the assumed rate of inflation, and is therefore 2.0% pa.
- All other earnings levels, state benefit related or UUKPF related, are assumed to increase at 2.5% pa.
- Investment growth applying to any defined contribution (DC) pension arrangement is assumed to be 5.3% pa from the relevant statement date.
These assumptions may not be borne out in practice, or may not reflect a realistic expectation for your pension planning. The results from the Retirement Planner should be interpreted accordingly.