The 'cost of delay' figure is the difference in the total value of a pension pot at retirement if the saver started one year later (e.g. age 45 vs. age 46).
We had to make several assumptions including:
- Pension pot growth of 5% each year;
- Charges of 1% each year;
- Tax relief of 20%;
- Retirement age 65;
- The figures have been adjusted to take the impact of 2.5% inflation into account so that the figures show you in today's prices, how much a fund could grow to.
Please bear in mind, that the figures are intended to highlight the approximate cost of delaying a pension - they do not reflect your personal circumstances and are not a guide to future growth.