Pension forecast. It seems a pittance.

[BecksBristol]

Your estimated fund value at retirement, in today's money, is £231,000.

This could provide you with an estimated annual annuity income of £4,985.

Was I expecting too much in terms of an income?

@ifadirect I will soon be 55.
This will be my only income apart from state pension.
The forcast is in the equivalent of "today's money" so I assume the actual figure will be more than that, so inflation is accounted for.
I don't know what "joint life basis" or "capital guarantees" means.
I just withdrew £15000 to invest in some stocksof my own choosing but apart from that I haven't tinkered with it. Approximately £600 per month will be paid into it until I'm 62.

Annuity rates are linked to interest rates (the provider has to back them up by placing the capital in government bonds) and as interest rates are at a historic low, annuity rates are too.

There are better ways to use a defined benefit contribution pension. If you retire at 62, then (assuming you're a woman) then, actuarially, your life expectancy is about 25 years, and if you simply used 1/25th of the money every year (before tax) it would give you £9,240 rather than £4,985. As ifadirect says, those are two extremes and there are a lot of possibilities in between.

A lot depends on your circumstances - are you married/partnered or single, and if married/partnered does your significant other have their own pension and does it have a survivor's (nee widow's) pension attached, do you own a home outright, own with a mortgage or rent, do you expect a full state pension or a reduced one, if you die early do you want anyone else to take the benefit of what's left, etc?

Again, it's all dependent on your circumstances, but your appear to be planning retirement at 62. Thats five years before you reach state pension age. As someone who is currently 63 and with 64 looming over the horizon I'd recommend delaying retirement if you at all can, because the longer you can work the more you can save and the shorter you would have to live on your pension savings - as long as my health keeps up I'm probably looking to work until about 70 but I'm in a job I enjoy and I married and had children late so they're not going to be independent for a few years yet.

Thanks TalbotAMan . That explains why the forecasted amount seems to go down every year!
I don't expect to live to a ripe old age (chronic health condition), have paid off my mortgage and don't have any dependants so it looks like I will be better off drawing down the money.

If you have a chronic and life shortening health condition that potentially changes the whole thing.

That is very good to know. A 660% uplift would be very nice.

ifadirect Speaking as someone with a chronic illness, I have come to the conclusion that a longer life wouldn't necessarily be a gift.

The preferred option would of course be to have good health, but that isn't an option.

(Straying from the topic somewhat.)