Hello
Does anyone understand how pension companies make their fund value projections? I have a number of funds with Standard Life - the majority (unfortunately) in with-profits.
I can view the current value of these funds and get a projection of their future value online making a variety of different assumptions. However, I'm blowed if I can reproduce these results myself, even though I believe I have all the necessary data. Here's an example - can anyone tell me what I'm doing wrong?
Present Fund value = X Number of years to retirement = N Assumed Annual Growth (%) = G Surrender Value Adjustment (%) = S
Value at retirement = X*(1-S/100) * (1+G/100)^N
I'm assuming the value at retirement is given in today's value.
Standard Life publish values for G for high, intermediate and low assumptions. As far as I can see, the upper limit for the Surrender value is 25%
I've applied this to each of my funds and ignored any final bonus but still get more than the value reported by the Standard Life online system. I'll take it up with SL but does anyone see where I might be going wrong?
Thanks Des