We’ve put together a list of commonly asked questions about SMPI rates. If there is anything else you need, you can use our contact form to get in touch.
SMPI rates are governed by Financial Reporting Council regulations, and the inflation rate assumption used in projections will remain as 2.50%.
Statutory Money Purchase Illustration (SMPI) is an illustration of what your pension may be worth when you reach your selected retirement age.
To work out your SMPI rate, we look at the volatility (risk level) of the fund you're invested in. Where available this is based on the fund's average volatility over the last five years. This volatility is used to give a fund one of the standard accumulation rates of 2, 4, 6, or 7%.
The table below shows the different levels of volatility and the corresponding accumulation rate. The accumulation rate represents the assumed annual rate of return on both your current fund and any future contributions.
Volatility Group |
Volatility | Accumulation Rate | |
|---|---|---|---|
| Equal to or above | Less than | ||
| 1 | 0% | 5% | 2% |
| 2 | 5% | 10% | 4% |
| 3 | 10% | 15% | 6% |
| 4 | 15% | unlimited | 7% |
Source: Aegon UK. These rates are assumptions and are not guaranteed.
We regularly review our growth rates and will change them from time to time. These rates are effective from 6 April 2026.
The value of an investment can fall as well as rise and isn’t guaranteed. The value of your pension pot when you come to take benefits may be less than has been paid in.
If you’re invested in a Lifestyle fund, the way we work out your SMPI is slightly different. Lifestyle funds automatically move your money into lower risk investments as you get closer to retirement, and we need to take these future switches into account.
So, instead of using just your current fund, we look at both:
- Your current mix of investments
- The investments you’ll gradually move into over time
We then work out an average level of volatility across those funds. This averaged figure is what we use to calculate your future growth (accumulation) rates. Because of this approach, you won’t be limited by the volatility bands shown in the table above.
The income value in the illustration assumes that you don't take any lump sum when you start taking your pension benefits. When you reach retirment, you can normally take up to 25% of your fund value as a tax-free lump sum.
If your projection works out to be less than £10 a month (which is £120 a year), your statement won't show a detailed breakdown. This is because projections at very low amounts can be difficult to interpret and may not be meaningful.