When you start a Wealthsimple pension we show you a forecast of how much you might accumulate over time, based on the information you entered. The figures are designed to give you a clear picture of what you might get from your pension pot as you approach retirement.

We calculate the expected average returns for each pension pot portfolio, as well as the spread of likely outcomes, using historical data. We look at the estimated returns for a portfolio of equities and government bonds in different percentages depending on the portfolio risk level. In general, the higher the risk of a portfolio the greater the proportion of equities — both in the UK and overseas — and a higher level of expected return. Of course the increase in the level of expected return also increases the risk of loss in your investment.