Depressing pension statement

[Lost ranger]

Just received a projection from the pension scheme of a firm I worked for some years ago. It seems I have just over £100,000 in this particular scheme, which will give me a projected income of £2,600 a year. Index linked I believe, but if I just left the money under the mattress and took out £2,600 a year it would last me for 40 years,

Are annuity rates really that bad?

[Lost ranger]

cavey76 said:

£2600 index linked isnt the same as dividing £100K/£2600 and thinking it would last 40 years.

Assuming indexing grew it 1.5% a year(not sure if reasonable or not) it would be £4700/yr by year 40.

We’ll see more of these posts as people with modest pension funds say, “eh but i might aswell just spunk it as its the same as 30 years at £modestsum/yr”

FWIW - i ‘d already be on the phone to AJBell and have that bad boy transferred under my own control.

The point I was making was that even though the projection is indexed linked £2600 seems depressingly low. Although the £100K/£2600 approximation doesn't allow for index linking it doesn't allow for investment return either.

I don't have an issue with the performance of the fund, it's purely annuity rates that are depressing.

Incidentally the sum is from AVCs built up alongside a defined benefit pension.