Baker Hughes

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About myPension tools


The illustrations produced by the Planner are for information purposes only. These illustrations do not constitute advice. If you need financial advice you should speak to an independent financial adviser (IFA). You can find an IFA in your area at www.unbiased.co.uk

Key Terms

DC means a 'defined contribution' pension, such as from the DC Section of the Baker Hughes Pension Plan (the Plan).

DB means any 'defined benefit' pension earned from previous employers (and also from the old Baker Hughes Defined Benefit Section and the BJ Services Pension Scheme).

If total contributions (yours and the Company's) in any tax year exceed the Annual Allowance (£40,000 for the 2014/15 tax year), you may be liable to a tax charge.

The DC illustrations are in line with the tax year 2013/2014 Statutory Money Purchase Illustrations (SMPI). The basic assumptions include:

  • investment return on the DC/AVC funds of 5% pa - (this includes an allowance for average future investment and administration expenses of 0.5% a year).
  • inflation of 2.5% a year.
  • salary increases of 3% a year (0.5% above inflation).
  • the annuity used to buy any pensions from the DC and/or AVC funds is based on an interest rate of 1.9% pa (i.e. 0.6% pa below inflation) and on SMPI mortality assumptions. The annuity assumes you will choose to receive pension increases in line with price inflation.
  • if you were to die within five years of retiring, a lump sum payment equal to the outstanding balance of the first five years' pension payments.
  • a 4% allowance for expenses upon purchasing an annuity.
  • you remain a contributing member of the Plan until you retire.

The illustrations shown are based on a particular set of assumptions and therefore changing any one of these assumptions will ultimately change the figures in the projections shown and possibly any conclusions drawn from them.

All of the Plan's actuarial factors can be changed in the future. However, apart from that noted below, no allowance has been made in the projections for such changes. In particular, you should note that:

  • all future contributions are assumed to be as a fixed percentage of your future salary.
  • your projected S2P (State Second Pension) benefits have been calculated approximately. The calculation of your S2P benefits are based on the 2013/2014 tax year limits.
  • the target annual gross pension is calculated using income tax rates applicable for the 2013/2014 tax year and assumes individuals have a basic personal income tax allowance of £9,440.

Other important information about the myPlanner calculations.

All figures shown in myPlanner are based on the data you have entered. All figures are shown projected to your chosen retirement age in current money terms (i.e. net of future inflation increases).

myPlanner will only give an estimated illustration of your retirement benefits, and is provided for information purposes only. You should note that the pension figures shown are in respect of pension figures only and do not allow for any cash that may be taken at retirement.

All figures have been rounded approximately for illustration purposes and should be used as estimates only.

The DC illustrations in myPlanner are particularly sensitive to investment returns, your DC contribution rates and annuity terms at retirement. The illustrations shown have been calculated on three different scenarios of investment return assumptions (i.e. the standard SMPI assumption for investment return of 5% and also 1% a year less and 1% a year more). The higher and lower amounts should not be considered as minimum or maximum amounts that may be received. Actual benefits could be more or less than any of the amounts shown.

The DC pension figures in the illustrations include either a 0% or 50% spouse's pension, depending on the inputs selected.

The Basic State Pension and S2P have been included in your illustration, although please note that these benefits will only come into payment at your State Pension Age and the State Pension is likely to change in nature from 2017 based on recent Government proposals.

The illustrations also include an estimate of the AVCs, which need to be paid to meet the estimated target level of income. These AVCs are in addition to the contributions set out in the inputs page.

Other limitations

The illustrations do not take into account your personal tax position, nor do they take into account any potential changes in the tax treatment of your pension benefits.

In particular, the illustrations do not take into account any future changes in legislation including changes that may have already been announced but not yet implemented or any potential changes in tax treatment.