How your money could grow

Saving £100 a month for 20 years could result in a pension pot of £35,000.

Assumptions

In order to present this example of how a pension can build up over time we have made certain assumptions, including:

  • Savings of £100 each month for 20 years;
  • Pension pot growth of 5% each year;
  • Charges of 1% were incurred each year;
  • Tax relief at 25%;
  • 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, this is intended as a general example of how modest amounts can build up over time, it should not be used as a forecast and future growth could be higher or lower than the above.