Pension Funding Review

Pension Funding review

Pension Funding Review


Whether you already have a pension fund, or are taking steps to put one in place, you should always check at least every three years, whether your pension funding is on track to produce your target pension fund.

We can offer clients a complete review of their pension needs. The review is a three step process that provides the client with a recommended path to achieving their target retirement income.

We first look at the client’s pension funding requirements, assessing what level of funding is already in place and look at funding gaps that may be evident.

The second part of the review exercise is to look at suitable pension products. The scope of products assessed will depend on the client’s current pension arrangements.

The third step is to look at the investment funds suitable for the client’s pension investment strategy. This will depend on the risk profile of the individual and the remaining working years to retirement. The longer the duration to retirement, the greater the client’s ability to adopt a higher investment risk position, for what is essentially a long term investment plan.

Funding Calculations


There are a number of pension fund calculators available online. The calculators will provide different results, this is because some reduce the target pension fund with the equivalent state pension, some may adopt slightly different growth assumptions and some may assume different levels of charges. But they all have one thing in common; they are attempting to illustrate to you, an approximation of what you will need to invest in your pension fund now, in order for you to enjoy a retirement income.

Our pension funding calculator can be used as a guide to calculating what value your pension fund should be at retirement. The pension calculator will also provide an approximate target pension contribution.

The funding calculator assumes a level of investment growth. The chosen pension investments may outperform this assumed rate of growth. This is certainly possible in the short to medium term, however as the client gets closer to retirement his/her investment strategy should become more conservative and therefore growth rates will reduce to lower levels.