Please be aware the figures produced from the retirement calculator are indicative only and do not constitute an entitlement to benefits from the Morrisons Retirement Saver (“the Retirement Saver”). The retirement calculator should be used as an estimate of the amount you will pay and could receive from the Retirement Saver on your retirement only. You should not use the retirement calculator as your sole retirement planning method, instead you should contact an independent financial adviser for help with your retirement planning.
The retirement calculator is not designed for enhanced members, but you can use this as an indication of the benefits you might build up in the Retirement Saver.
We have used the following assumptions for the retirement calculator:
- You will make contributions of 5% of your pensionable pay to the Retirement Saver while you are an active member of the Plan, with an overall 16% of your pensionable pay added to your retirement pot for each year you are an active member.
- You will use your saving in the Retirement Saver to buy an annuity at age 65 (the Retirement Saver's normal retirement age).
- Your retirement pot will be revalued in line with inflation each year. The inflation increase is currently based on the consumer prices index (CPI) up to a maximum of 2.5%. For the purpose of this calculator we have assumed that CPI is 2% a year. A different prices index may be adopted from time to time.
- Any early retirement factors applied to your retirement pot will be a 4% reduction for each year before age 65. Morrisons sets the early retirement factors and will vary them from time to time so they may be different to the amount shown in this retirement calculator.
- Your salary will not increase.
- Any tax relief is calculated at the basic rate of tax (20%). If you pay higher rate tax then you may receive further tax relief on your contributions to the Retirement Saver.
- Tax bands are based on rates in the 2012/13 tax year.
- The cost of buying any annuity is based on standard annuity rates at April 2012. We have also assumed an annuity charge at retirement of £160. This amount would only be deducted from your benefits if you chose to use the Plan administrators' service for selecting an annuity at your retirement.
- The figures are shown at ‘today’s prices’ meaning your retirement pot figures are discounted for future inflation.
- Morrisons' contributions are indicative only.
The total amount paid into the pot may exceed your final retirement pot if you choose to retire before age 65 due to the early retirement factors applied. In other words, because an early retirement factor may be applied if you take your retirement pot to buy an annuity before your normal retirement age (normally 65), this could mean your pot is less than what you have paid into the Retirement Saver.
If you require any further details about the assumptions used in this retirement calculator please contact the Retirement Saver Administrator.