How is DC pension growth projected?

Future pension value = current pot x (1+r)^n + monthly contribution x [(1+r)^n - 1] / r. Where r is net monthly investment return (gross return minus charges/12) and n is months to retirement. Projected in today's money using inflation-adjusted returns.

What impact do pension charges have on growth?

A 1% annual charge vs 0.5% might seem small but over 30 years reduces the pot by approximately 14%. On a £500,000 pot, that's £70,000 less. Always check the Total Expense Ratio (TER) when choosing pension investments.

What growth rate assumption should I use?

The Money and Pensions Service (MaPS) standard projections: cautious 2%, moderate 5%, adventurous 8% (nominal, before charges). In real terms (after 3% inflation): cautious -1%, moderate 2%, adventurous 5%. These are standardised for comparison purposes, not guarantees.

Workplace DC Pension Pot Projection Calculator

Project defined contribution (DC) workplace pension pot at retirement. Variables: current balance, monthly contributions (employee + employer), investment return (growth/balanced/conservative), charges (total expense ratio), years to retirement. Includes inflation adjustment.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Project defined contribution (DC) workplace pension pot at retirement. Variables: current balance, monthly contributions (employee + employer), investment return (growth/balanced/conservative), charges (total expense ratio), years to retirement. Includes inflation adjustment. Use the dc pension pot projection result to inform your calculation.

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