Warning

This calculator assumes compound growth only. It does not take into account charges on products, which will reduce the returns shown. The Financial Services Authority (FSA) suggests 3 growth rates for products. Taxed products are allowed to use projection rates of 4%, 6% and 8%. Products which are completely or largely tax-free (such as ISAs and pension plans) use rates of 5%, 7% and 9%. Remember these are neither maximum nor minimum rates of growth and again remember that charges reduce the returns. This calculator can help you by giving you a starting point. You should speak with your adviser and get specific product quotations to determine the best way of meeting your needs.

Inflation will also have an effect of reducing the spending power of the monies saved as present day costs rise on a regular basis. You need to take this into account when saving for a specific future purpose.