Our interactive calculator provides insights into your financial future. It takes into account variables such as your initial investment amount, your age, your monthly savings plan, your chosen risk category, life expectancy and inflation forecasts.
Start by entering the most important variables and then easily calculate various scenarios: How does the result change if you increase or decrease your monthly deposit by £50? What happens if you raise the inflation rate or take less risk? You want to retire before the state retirement age - how does this affect your income in retirement? The Time Machine provides the answers:
Disclaimer: The results shown in this calculator do not constitute personal advice. It is provided to give you an indication of how much you need to pay into a pension, and what potential retirement income that may achieve. Scalable Capital Limited does not provide any legal and/or tax advice. Restricted investment advice is only given if the provision of such service has been expressly agreed upon. With investment comes risk. The value of your portfolio with Scalable Capital can go down as well as up and you may get back less than you invest. Past performance is not an indicator of future performance. Learn more about risk here.
Some investors believe that investments in stocks are too risky. But historical stock market data show that not only do they deliver higher long-term returns than bonds or cash savings, their risk level also decreases significantly with the length of the investment. As the chart below illustrates, an investment into the MSCI World - a very broad basket of global stocks - has never returned a loss since 1975 if it was held for at least 15 years. Those who held their investment for over 25 years would on average have made a return of 9.5% per year and even when buying and exiting their investments at the worst points in time they would still have enjoyed a return of 6.4% per year.
Returns on stock markets do not solely depend on the price development. Dividends also contribute their share to the return. And they significantly cushion the price risk.
It is no secret that shares generate more profit in the long term than bonds. But a recent study shows just how wide the returns gap has been for over 100 years - and where the stock markets have grown the most.
The rewards of a long-term investment strategy can outweigh the risks of short-term market instability.