How much do I need in retirement? A question millions of people in the UK have. It’s a big question. And it deserves a proper answer.
Helping people to answer this question is important for us at Profile Pensions. Making this seem less daunting through a simple and easy to understand retirement calculator has huge customer and commercial benefit. Here’s why….
What made us decide to build a pension calculator?
Unsurprisingly, people do not feel confident about their retirement. Far from it.
Research we conducted through Yougov told us over half of Brits (51%) don’t know how much they need in retirement and 41% of Brits don’t have a positive outlook for retirement*.
On a more positive note, it’s clear to see people are clearly looking for help when it comes to planning for their retirement and how much they’ll need to save. A quick glance at the highest ranked google search terms related to pensions shows this. The term ‘pension calculator’ is the clear winner here with around 52,000 monthly searches.
As you can imagine, capturing some of that traffic would be significant when it comes to growing organically. So we set about designing a tool that people will use to help them take the first steps to planning for their retirement.
Simplicity underpinned our approach
We approached this in a different way to most other calculators that currently exist. These require consumers to know how much their pension is worth and what they’re contributing.
Instead, we looked at this in simple terms, directly answering the question ‘how much do I need in retirement?’ We achieved this by asking three questions.
- Are you single or in a relationship?
- At the point of retirement will you own your home or rent?
- What age do you wish to retire at?
By answering these questions, our pension calculator will give you an indicative view of how much income you will need in retirement for two different lifestyles: a modest retirement using analysis from the Joseph Rowntree Foundation and a comfortable retirement using analysis from Which?
We then show how the state pension and a personal pension will help achieve these types of retirement.
Our tool is powered by a plugin — essentially this allows us to insert our own in-house model we use to calculate the various scenarios. This means when we want to update the data sets or the assumptions we’ve used in the model, we can.
We teamed up with August Media on the design and build of our calculator to bring the tool to life with interactive animation that works across all the main desktop, tablet and mobile devices.
What are we hoping to achieve by this?
We have pushed this out to help educate people on the importance of understanding what they have and how it will contribute to their “future” lifestyle. Ultimately, if people are landing on this page and taking this crucial step, then our service offers them the opportunity to take actual action to improve their retirement outlook.
But, there’s a long way to go to get close to the holy grail of appearing on the first page of Google results and getting a huge uplift in website traffic. This won’t happen overnight. However, through effective PR and content marketing we have the belief this tool could be a big milestone in the growth of our business.
Marketing Manager, Profile Pensions