Retirement calculator assumptions

We hope you find the retirement calculator helpful in planning for your future. Although we can’t predict what will happen between now and when you retire, in order to provide these figures we have to make some assumptions. The types of things we have to think about and our assumptions are listed below.

Please be aware the figures produced from the retirement calculator are indicative only and do not constitute an entitlement to benefits from the Wincanton plc Pension Scheme. You should not use the retirement calculator as your sole retirement planning method, you can also use the modelling tools in your pension account and you may want to contact an independent financial adviser for help with your retirement planning.

Assumptions

These assumptions are based on the 2019/20 assumptions as advised by the Scheme’s Consultant. 

What you will do in the future

  • Contributions are made by both you and the Company based upon the percentage of annual pay as selected by you, less the Lower Earnings Limit, whilst you are an active member of the Scheme.
  • You will continue to be an active member of the Scheme until your normal retirement age, which is currently 65 under the Rules of the Scheme, or other retirement age you chose in step 3.
  • Your annual pay will increase in line with inflation.
  • The figures are shown at ‘today’s prices’ meaning your retirement pot figures are discounted for future inflation. Inflation has been assumed to be 2.5% per year.

Tax and National Insurance

  • Tax and National Insurance (NI) relief is calculated using a tax code of 1257L (i.e. single person allowance of £12,570 per year in 2025/26).
  • Tax and NI bands are based on rates in the 2025/26 tax year.
  • It is assumed that your pension contributions are made via SMART Pensions and that you pay National Insurance contributions. SMART Pensions is simply an efficient way of making pension contributions via salary sacrifice. It reduces the amount of National Contributions you pay, allowing you to keep more of your take-home pay.

How your lump sums are taxed

If you choose to take lump sums from your pension pot instead of using it to purchase an annuity, these will be paid to you directly by Capita.

If you take a lump sum you many need to take financial advice to ensure your tax treatment is correct.

Your benefits when you retire

The cost of buying an annuity (yearly retirement income) is based on gender neutral annuity rates at April 2019, assuming that:

  • You are a non-smoker with a fund value of around £50,000.
  • An underlying real interest rate of 0.25% per year is used in calculating the cost of converting your fund to pension.
  • The pension that you purchase at retirement is assumed to increase in payment in line with inflation, as measured by RPI.
  • We have assumed you are married and your spouse will receive a pension after your death equal to 50% of your own pension income.

Investments

  • Your pot is, and will continue to be invested in the Cash at Retirement Lifestyle option, whilst you are an active member of the Scheme.
  • Equity funds will yield a net* return of 5.31% per year.
  • ALMA funds will yield a net* return of 4.72% per year.
  • Cash funds will yield a net* return of 1.37% per year.
  • The income shown is after annuity charges have been deducted.

*‘Net return’ is the fund investment return after fees. Different fees are deducted dependant on the fund in which you’re invested. 

Things to note:

  • If you enter your gross pay into the annual pay box, this may not be the same as your pensionable pay as it may include certain elements, like bonuses, car allowances and holiday pay.
  • The annual pay amount that you enter will determine whether you are a basic or higher rate tax payer. This tax rate will then be used to calculate the amount of tax and NI relief you receive. The actual tax relief you receive depends on your individual circumstances and may differ from the amount quoted.
  • You can start taking benefits from age 55.
  • The contribution amounts are based on qualifying earnings, that is, the part of annual salary over £6,240 (the lower limit for pension contributions in the 2024/25 tax year), which is also assumed not to increase for the purpose of this illustration.

If you require any further details about the assumptions used in this retirement calculator please contact the Scheme administrator.

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