Investing 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 and generic product charges into account. Then it will give you an idea of how much money you’d need to consider saving each month into an investment product such as an OEIC, ISA or bond.

What you should save every 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 cost is around £27,161 (independent.co.uk, September 2017)
  • University tuition fees – universities and colleges can charge up to £9,250 per year (Gov.uk, January 2018)
  • Dream holiday – a world cruise could cost £24,899 per person (P&O, January 2018)

How the calculator works

This calculator should not be relied upon to show the actual return on your proposed savings amount and provides no guarantee that the suggested monthly amount shown will result in any lump sum you specify.

The actual value of any savings will depend on a number of factors including; the amount you save, how long you save for, the interest rate, investment performance, any tax payable, product fees or charges and the effect of inflation.

The calculation assumes 4.5% investment growth each year and inflation at 2% each year. We’ve assumed an initial charge of 0% and a yearly charge of 0.85%. Scottish Widows has selected these values to provide an approximate monthly savings figure for illustrative purposes only.

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 made an assumption for inflation. Our current assumption is 2% a year.

You should review your needs with a financial adviser before investing in any financial product. Product literature, together with a projection which is personal to your circumstances, will be provided before you make a decision to invest.

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.