In accordance with regulation 23(1)(ca) of the Administration Regulations, as inserted by the 2018 Regulations, the Trustees have prepared an illustration detailing the impact of the costs and charges typically paid by a member of the Plan on their retirement savings pot. The statutory guidance provided has been considered when providing these examples, showing projections for the default fund, the cheapest fund and the most expensive fund for members.
The below illustration has taken into account the following elements:
- Savings pot size;
- Real terms investment return gross of costs and charges;
- Adjustment for the effect of costs and charges; and
- Time
The Plan only has deferred members.
The illustration includes all member costs, including the Total Expense Ratio, transaction costs and inflation.
Notes:
1. Projected pension pot values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
2. The starting pot size is assumed to be £10,000.
3. Inflation is assumed to 2.5% p.a.
4. Values are estimates and are not guaranteed.
5. The default fund shown is as at the growth phase (16 years prior to retirement).
6. The net projected growth rates for each fund are as follows:
