Retirement Income Alliance

Set my goals

You can explore and set your goals by using our tools. But first take a look at how they work by clicking on the links below

Budgeting tool 

With this tool you work out how much you think your outgoings may be when you start taking your pension. Simply fill in an estimate of your day-to-day spending and income from any other sources (savings etc.). The system will then give you an estimate of the income you will need. 

Remember, when you stop working your lifestyle changes and the money you once spent on getting to and from work, buying coffee and lunch is no longer required. You might also feel that some of the clothes you bought were specifically for work and so that cost is no longer needed, for example. Read this analysis of spending habits in later life.

Retirement and Savings tools

The Pension Savings tool

This tool is built to calculate how much your pension funds could grow to and the annuity income you might receive in retirement. it also can take into account the impact of inflation on your money. So if you adjust for inflation the graph will show the real buying power of you pension in the future. Please note inflation adjusted income will be less than your desired income.

The tool works in the following way

  • It adds your monthly savings to your current savings from now until your selected retirement age.
  • Assumes your money grows by 5 per cent every year, so if you had £100 at the beginning of the year and did not add any more savings to it, it would grow by £5 to £105 by the end of the year.
  • At your retirement date, it converts your total savings into a monthly income using an annuity.
  • The information is displayed in a simple graph showing whether you are likely to meet your target income based on your current savings. The red line indicates your target income and the coloured block shows how much your savings could buy at any age indicted on the bottom axis.

This tool only provides an indication of what your savings could grow to and does not provide any guarantees.

The Investment Saving (ISA) tool

Much like the Pension Saving tool, the Investment Saving tool projects what your ISA savings could be worth in the future. This is helpful so that you can use the information to bolster your income in later life.

The tool works in the following way.

  • You input your current ISA savings and what you think you can continue to save.
  • Select a target fund and number of years over which you wish to invest.
  • The results chart will show the potential growth of your ISA for the details you have input.
  • If you have selected 'Maximum Allowance' the results chart will also show how much your fund could have been worth if you invested the maximum ISA allowance each year.
  • The system assumes a 5 per cent annual growth rate and a 1 per cent annual charge.

This tool only provides an indication of what your savings could grow to and does not provide any guarantees.

The Retirement Income tool

This tool is designed to help you to understand how annuities and income drawdown work and to see what could happen if you combined income from both. If you are unsure of this please take a look at the pension options video.

It works in the following way.

  • Enter the value of your pension savings and your desired monthly income.
  • The State Pension entry assumes you will receive the maximum amount in today’s terms.
  • If you have any other income from final salary pensions such as a public sector scheme, or property you can add an estimate of this amount in the ‘Other annual income’ box.
  • You need to set the age(s) when you would like to start taking income from your annuity and drawdown plan.
  • Set the amount of income that you wish to take from income drawdown and annuity.
  • If you don’t want income from an annuity or income drawdown set the value to £0.
  • Adjusting the amount of tax free cash you want. There is a maximum of 25 per cent, which means if you have £100,000 in your pension, £25,000 will be tax free. You would have to pay income tax on the remaining £75,000.
  • The graph will show different coloured blocks for each type of income source that you have. The red line shows your target desired income. If you have chosen to adjust for inflation the red line will reduce as the buying power of your target income is eaten away by inflation.
  • Adjust the age at which the graph ends to see if, or when, you could run out of money.

This tool only provides an indication of what your savings could grow to and does not provide any guarantees.

By using these tools you agree that some of your data held by RIA will be transferred to the tool provider to pre-populate the system and improve your experience.