We’ve used information you’ve provided, combined with assumptions made by HSBC, to illustrate whether funds you have set aside and/or are prepared to set aside for retirement are sufficient to achieve your target annual retirement income for the expected length of your retirement. The figures shown are indicative only - they're not guaranteed and are not maximum or minimum amounts.
There is a 1 in 20 chance that the investments may underperform the “poor market conditions” represented in this illustration. This may indicate a potentially negative return and in a worst case scenario, it’s possible to lose the entire investment.
Our Key Assumptions
Growth Rate
The initial results are based on an assumed growth rate associated with the risk level you selected
Investments with greater risk usually have a higher potential for gains or losses. Whereas less risky investments usually offer more stability and a lower return.
No Risk
You generally do not want to take any investment risk, since you can accept no investment loss. Financial products with an investment element are not suitable for you.
Very Low
You are generally comfortable with achieving minimal level of return potential on your investment coupled with minimal risks. Capital values of products that are potentially suitable for you can fluctuate and may fall below your original investment. In normal market conditions fluctuation is expected to be minimal (although this is not guaranteed), and you are comfortable with this level of fluctuation. Investment products with risk rating 1 are likely to be suitable for you.
Low
You are generally comfortable with achieving a low level of return potential on your investment coupled with a low level of risk. Capital values of products that are potentially suitable for you can fluctuate and may fall below your original investment. In normal market conditions fluctuation is expected to be low (although this is not guaranteed), and you are comfortable with this level of fluctuation. Investment products with risk rating 2 or below are likely to be suitable for you.
Balanced
You are generally comfortable with achieving a moderate level of return potential on your investment coupled with a moderate level of risk. Capital values can fluctuate and may fall below your original investment. Fluctuation is expected to be higher than products that are suitable for investors in lower risk tolerance categories, but not as much as for higher risk tolerance categories. Investment products with risk rating 3 or below are likely to be suitable for you.
High
You are generally comfortable with achieving a high level of return potential on your investment coupled with high level of risk. Capital values can fluctuate significantly and may fall quite substantially below your original investment. You understand the risk/reward equation, and are comfortable with this level of fluctuation. Investment products with risk rating 4 or below are likely to be suitable for you.
Very High
You are generally comfortable with maximizing your return potential on investment coupled with maximized risk. Capital values can fluctuate widely and may fall substantially below your original investment. You understand the risk/reward equation, and are comfortable with this level of fluctuation. Investment products with risk rating 5 or below are likely to be suitable for you.
Inflation rate and forecasts of your target income
Due to the rising cost of living, the target income you provide is increased in line with inflation at the rate of 2.04% when calculating your desired retirement fund. It is assumed that upon retirement, a fixed amount that’s in line with inflation will be withdrawn from the retirement fund each month as income.
Your regular contributions
We have assumed that any regular savings or investments will remain constant over the contribution period, regardless of inflation. For example, if you start off at €1,000 per month, you will continue adding €1,000 per month for each year that contributions are made.
Average life expectancy
We have assumed that average life expectancy is 84 years.
Figures shown in the graph/table
To illustrate the uncertainty of returns, we show a range of potential outcomes for the risk level you selected. However this isn’t guaranteed, and the value of the investments can be higher or lower than the ranges illustrated. Negative returns are possible and the entire investment could be lost.
Please note that all the returns shown in the table are future values, rounded down to 3 significant figures.
Making adjustments
If either the amount contributed at the start or the monthly contribution to the retirement fund is changed, we assume that the changes occur immediately.
The value of the retirement fund is adjusted to take into account any changes made. The return is then calculated based on the new value of the retirement fund.
If the risk profile is changed, the calculator will adjust the growth rate to that associated with the new risk profile.
