Compounding Illustration

1. What is this Document?

This document forecasts the future value of a Penfold pension based on the charging structure we use. This document is relevant for all Penfold customers.

It is a requirement for us to publish this Compounding Illustration as part of the Independent Governance Committee process we have chosen to deploy to meet the required checks and oversights associated with providing our Workplace pension to some of our customers.

If you would like more detail about our fees, then please refer to our Charges Guide.

2. Compounding Illustration

The following table outlines the projected value of a Penfold pension in today’s terms at the different stages of the pension’s lifetime shown and under different investment growth rates for our Standard Lifetime Plan.

3. Additional Notes

• The assumed starting pot size is £10,000
• Inflation is assumed to be 2.50% each year
• Contributions are assumed from age 22 to 68 and increase in line with assumed earnings inflation of 2.5% to 4% each year
• Fees consist of our annual management fee and transaction costs (average as of most recent full calendar year)
• Values shown are estimates and are not guaranteed
• The projected growth rate for each fund are as follows:
  • Default fund: 2.5% above inflation
  • Fund A: 2% above inflation
  • Fund B: 1% above inflation
  • Fund C: 1% below inflation