FundRobot » Pension Funds » how do you find my current pension yield?

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Default find my current pension yield

The second example on page 7 (Claire) explains how to do it:-

1. Decide on which day you want your pension to start.
This is the 'date of designation'.
For the argument's sake: let's say that you want your pension to start today, January 22, 2014.
So: Date of designation = January 22, 2014.

2. Go back to the 15th day of the calendar month before the Date of designation.
The 15th day of the calendar month before January 22, 2014 was December 15, 2013.

3. Next: you must take the yield from the 15-year UK gilts on that day (Dec 15, 2013).
But wait: last December 15 was a Sunday, so you must get the yield on the previous business day: Friday 13, luckily.

I am sure that you remember off the top of your head what the yield was on that day ;-)
If you don't: the instructions at Point C, Page 5 tell you the web site where to find that yield.

4. Now round down that yield to the nearest multiple of 0.25%
E.g.: if the yield was 3.31%, you would round it down to 3.25%.

5. Finally: use the Table on page 9.
Match your age with the (rounded) yield found at the previous step.
The intersection of the two is the amount of drawdown pension for every 1,000 of funds.
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