Pension modellers allow employees to calculate the value of their future retirement pension †based on their current pension contributions. Modellers vary in sophistication, but usually take into account age, gender, length of savings, possible investment performance and sometimes state pensions.
Pension modellers are especially useful communication tools to demonstrate to employees how much they need to contribute to their pension fund each month in order to retire with a reasonable pension. They can be used in financial education programmes and by financial advisers in giving financial advice. See also www.pensioncalculator.org.uk.
