Hypothetical annuity cost is the likely cost of buying similar benefits on the open market.
Hypothetical annuity cost is not a standard benefit. It's included on your statement to show the likely cost of buying similar benefits on the ‘open market’.
The figures are based on market conditions at this date. Costs could vary significantly at different dates.
The factors used in the calculation assume a normal pension age of:
- 60 in the 1995 section
- 65 in the 2008 section
- 65 in the 2015 scheme
This amount is for general comparison purposes only. It is not possible to take this value from the pension scheme.
You cannot use it as a cash equivalent transfer value (CETV) for divorce settlements.