The Squeezed Middle Assumptions

Regular contributions are paid in advance (i.e. at the start of each month). Regular contributions go up by 2% each year over the term of your plan (in line with assumed salary inflation).

The projected values assume an investment return before retirement of 4.00% per annum. This rate is for illustrative purposes only and is not guaranteed. Actual investment growth will depend on the performance and management charges of the underlying investment funds and may be more or less than illustrated.

An inflation rate of 2% per annum is used to express the future values in today’s terms.

The illustrations contained in this example follow the guidelines issued by the Society of Actuaries in Ireland. The annuity factor used to calculate the estimated pension is €25 for every €1 pension per annum.

The annuity rate used is a long term average rate and is not guaranteed. The actual annuity rate available at retirement may differ from the annuity rate used in the illustration.

The estimated annuities quoted are payable monthly in advance and guaranteed for 5 years and life thereafter. Annuity payments increase by 2% per annum. A 50% death-in-retirement pension has been included.

Under the new National Pensions Framework, the age at which people qualify for the State pension will increase over time to 66 years of age in 2014, 67 in 2021 and 68 in 2028.

The contributory state pension remains at €11,976 per annum in today’s terms.

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