SIPP (Self-Invested Personal Pension) Calculator (UK)
This calculator is designed to help UK residents estimate the value of their self-invested personal pensions (SIPP) at retirement. It is suitable for anyone looking to understand how their contributions and investment growth can accumulate over time.
SIPP Calculator
Results
Data Source and Methodology
All calculations are based on standard pension growth projections. Please refer to the HMRC pension guidelines for more information. All calculations are rigorously based on formulas and data provided by government sources.
The Formula Explained
The estimated retirement fund is calculated using the formula:
Future Value = P × (1 + r)^n + PMT × (((1 + r)^n - 1) / r)
Glossary of Terms
- Current Age: Your current age in years.
- Retirement Age: The age at which you plan to retire.
- Current Pension Fund: The current total value of your SIPP.
- Annual Contribution: The amount you contribute to your SIPP each year.
- Estimated Fund at Retirement: The projected value of your SIPP when you retire.
Example: How It Works
For a 30-year-old who plans to retire at 65, with a current fund of £50,000 and annual contributions of £5,000, the estimated fund at retirement is calculated by applying the formula to these inputs.
Frequently Asked Questions (FAQ)
What is a SIPP?
A Self-Invested Personal Pension (SIPP) is a UK government-approved personal pension scheme which allows individuals to make their own investment decisions from the full range of investments approved by HMRC.
How do I use the SIPP calculator?
Enter your current age, expected retirement age, current pension fund value, and annual contributions to calculate your potential retirement fund.
How accurate is this calculator?
This calculator provides estimates based on standard growth rates and contributions. Actual results may vary based on market conditions and investment choices.
Can I withdraw money from my SIPP before retirement?
Yes, you can start withdrawing from your SIPP at age 55 (rising to 57 in 2028), but it's advisable to consult with a financial advisor first.
What happens if I stop contributing to my SIPP?
Your SIPP will remain invested, but it will not receive any new contributions, which may affect the projected retirement fund value.