Contracted out breakeven investment return ?

Roughly - it also depends on how long you have until your state pension age - obviously this will change drastically if you have 10 years to retirement or 40 years to retirement.

Whatever it is, I doubt that S2P in its current form will be around when I retire in 30+ years anyway.....

Dayton wrote: I saw someone on the Daily Mail forum mention that a return of 2.5% above the National Average Earnings Index (NAEI) is the breakeven point for contracted out investments. Is this correct ?

Contracted out invetsments are now under S2P, and the calculation is quite compliacted. It is no longer good enough to use simple rules of thumb.

I have written a simple programme for my IFA practice to do the calculations quickly and easily, and would be happy to send you a report if you wish. I need the following info:

Date of birth Sex employed income from tax year 2005/6 Amount of real return (above inflation) you are prepared to assume of your investments (a typical range is 0% to 4% return above inflation).

Peter Taylor

Peter,

What is your calculation methodology for doing this, and what factors do you specifically take into account ?

Rgds Neil.