Pension projection?

[devonianBiatch]

I'm looking for some advice. My partner and I are VERY late to the investment/pension game and I really haven't a clue what I'm doing. We currently live apart but will live tidied in the future when my adult child had moved out.

A few years ago he managed to get in the property ladder with a very small 10y mortgage of £220 a month (£300 with all insurances etc) . Which was perfect as he was 55 and the mortgage will end at 65 although we do over pay my £30-50 a month when we can afford it. The property is a 2bed ground floor flat with wetroom and disabled access so perfect for retirement. Gone up in value from 60 to 90k in the last two years.

Now, his pension is not wonderful. He only went back into full time work 8 years ago and he earns around £360-450 a week. Before this he was pretty seriously Ill so got some benefits and got his NI stamps. He has a private pension with The peoples pension and I understand he gets tax relief on everything he puts in, and I recently (last year) increased his personal contributions . His employer pays the minimum. He contributes between £80 and £130 ish a month.

Now, the reason for the post. The projected pension figure, is that based on his contributions carrying on at the same level? Or his current pot with compounded interest? Does it take into account any predicted FUTURE interest? Is this even the best pension fund for it to be sat in?

I am 16 years younger than him and disabled so I don't have any pension at all other than state . We will be able to just about survive on his state pension and my benefits but it will be a pretty miserable time so I'm doing everything I can to try and improve this. I'd be more than happy to take advice from people with more experience.

Generally, private pension projections assume contributions continued at the same rate as now, and allowing for compound interest.

It's most important to make sure you both have 35 years of NI contributions, so you each qualify for the full state pension.

If either of you is short, it is possible to 'buy' extra years, and is a good value move.

I don't know how they do projections but I suspect it is regulated, so there is a very conservative estimate based on contributions being made on an ongoing basis. Best to ask the pension provider for how they have calculated it.

With the employer paying in, keep that pension going. However there may be slightly lower cost options for a personal pension. Would need to look at fund and provider fees.

Providers differ in fees and fund choices, plus the more there is invested the lower the fees can become, as they may be capped instead of being based on a percentage of the amount invested.

Is it sensible to help him overpay his mortgage on his property?

Projections are based on contributions continuing at the same level and ending at the retirement age given on the document. They assume a mid-rate of interest growth (so it could be higher if the economy booms and lower if there is a depression).

Oh, and he may not want to pursue an annuity rate one he gets there, but for reference, on average £100k in the pension pot buys a £5k per year pension income assuming he takes it at 65 years old.

He already pays an extra £300-500 a year. Not huge but we've already shaved a year off