What is the impact of age in DC schemes?
If a member has a fund value of £150,000 and a basic single life pension is to be purchased then the amount of pension the member receives will depend on the annuity rates for their age.
Here you can see the pension that £150,000 will buy at age 60:
| Annuity p.a. | |
| At age 55 | £9,900 |
| At age 60 | £11,250 |
| At age 65 | £13,050 |
Annuity rates give you more pension if you are older because you are not expected to live as long.
Age has a big impact on retirement from a DC scheme.
