Work out how to prepare for life’s big events
Saving for the future
Weddings, holidays, school or university fees… whether you’re thinking about your own future or your child’s, saving for a lump sum in advance could make a big difference.
Try putting the amount of money you think you’ll need into our calculator. It will work out what an equivalent lump sum would be in the future, taking inflation into account. Then it will give you an idea of how much money you’d need to consider saving each month.
Some Facts & Figures
To help you work out how much you might need to aim for - have a look at the average costs of some big things that people save for.
- Wedding - the average wedding now costs nearly £20,000 (You and your wedding magazine)
- University fees and living expenses - in 2005/2006 the average cost was around £10,000 per year. The average weekly rent for university accommodation in 2006-2007 is £82 (National Union of Students)
- Dream holiday - a luxury round the world cruise could be anything from £10,449 to £133,000 per person (Cunard) and 2 weeks in DisneyWorld, Florida could cost from £2,500 in October 2007 for a family of 4.
How the calculator works
The calculation assumes 6% growth each year, inflation at 2.5% each year and we’ve taken into account our standard charges. Scottish Widows has selected these values to provide an approximate monthly savings figure for illustrative purposes only. You should review your needs with a financial adviser before investing. Key Features, together with a projection which is personal to your circumstances will be provided before you make a decision to invest.
We’ve asked you to input the required amount in ‘today’s money’ terms. Normally inflation would reduce what you could buy in the future. However, in this calculation we have allowed for the effect of inflation so that the value of your eventual lump sum is maintained. As above we’ve assumed that inflation will be 2.5% each year in line with the Retail Price Index.
The value of an investment is not guaranteed and can go down as well as up depending on investment performance (and currency exchange rates where a fund invests overseas). You could get back less than you invested.
