Project the pot to retirement, net of charges.
Projected pot at retirement
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Total contributed
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Growth earned
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Your breakdown
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Worked example
Take a 40 year old with an 80,000 euro pot, contributing 500 euro a month with 300 euro a month from the employer, 25 years from retirement. Growth is assumed at 5% a year with 1% of charges, so the pot compounds at about 4% net. Each month the balance grows by that net rate and the combined 800 euro contribution is added. After 25 years the projected pot is about 628,000 euro. Of that, the starting pot plus contributions add up to 320,000 euro, and compound growth supplies the remaining 308,000 euro or so. Note that only the employee 500 euro qualifies for income tax relief, and at age 40 the relief limit is 25% of earnings capped at 115,000 euro, so 6,000 euro a year of personal contributions sits comfortably inside it.
How it is calculated
The projection compounds the pot month by month. Each month the balance is multiplied by one plus the monthly net rate, then the combined employee and employer contribution is added. The net rate is your assumed growth rate less the annual charges, since fees come straight off returns and drag heavily over decades. Total contributions are the monthly amount times the number of months, and growth is whatever the final pot exceeds the starting pot plus those contributions. Separately, the tool checks the employee portion against the age-related relief limit, which rises from 15% of earnings under 30 to 40% at 60 and over, all capped at 115,000 euro of earnings. Only your own contributions count toward that limit; employer contributions to an occupational scheme are generally on top. The result is a projection, sensitive to the growth and charge assumptions, and not a promise of any particular outcome.