Wealth Growth Projector

Wealth growth projection combines multiple income streams and savings vehicles into a single compound growth model. The calculation takes your current net worth, adds monthly contributions (potentially split across pension, ISA, and general savings), applies different growth rates to each portion based on asset allocation, and projects the total forward year by year. Pension contributions include tax relief uplift, and ISA growth is modelled tax-free.

Milestone tracking identifies when your portfolio crosses key thresholds: £50,000, £100,000, £250,000, £500,000, and £1,000,000. The first £100,000 is often the hardest because compound growth on a small base is modest. With £500/month at 7% growth, reaching £100,000 takes approximately 11 years, but the second £100,000 takes only 6 more years, and the third about 4 years — demonstrating the accelerating power of compounding on a larger base.

The projector models real-world scenarios including salary increases (and therefore contribution increases), anticipated windfalls or inheritances, changing risk profiles with age (shifting from equities to bonds reduces assumed returns), and the impact of reaching ISA or pension contribution limits. It shows the path to financial independence, defined as the point where your portfolio can sustain your target annual spending indefinitely at a safe withdrawal rate.

UK wealth growth — historic returns 2026. FTSE All-Share total return (price + dividends reinvested): ~7-9%/year over 30+ years. S&P 500 global proxy: ~10%/year. UK property: 4-6% real total return (capital + rental yield, varies hugely). UK Gilts: 3-5% nominal. Cash: 2-4% nominal (often negative real). Diversified portfolio (60% equity, 40% bonds): 5-7% nominal long-term. Past performance not guaranteed — but 30-year averages provide reasonable planning baseline.

Compound growth — start early matters. £200/month at 6% for 40 years: £393,000 (you invested £96,000; growth £297,000). 30 years: £196,000. 20 years: £91,500. Each decade delayed approximately HALVES the final wealth. Sample: starting at 25 vs 35 with same monthly contribution — 25-start has 2× the pot at retirement. Compound interest 'eighth wonder of the world'. Best wealth-building strategy: start early + consistent + long horizon + tax-efficient wrappers.

Tax-efficient wealth building UK 2026. ISA £20,000/year — all gains and income tax-free forever. Pension Annual Allowance £60,000/year — relief at marginal rate going in, 25% tax-free out (plus state pension). Lifetime ISA (under 40): £4,000/year + 25% government bonus. Junior ISA: £9,000/year per child, locked until 18. EIS/SEIS: 30%/50% income tax relief + CGT exemption (high risk). General Investment Account: taxable but useful after maxing wrappers. ISA + pension combined: most UK adults never need GIA.

Retirement wealth — UK requirements. PLSA Retirement Living Standards 2024: minimum £14,400/year single, £22,400/year couple. Moderate: £31,300 single, £43,100 couple. Comfortable: £43,100 single, £59,000 couple. State Pension £12,000/year covers about 35-50% of minimum. Pension pot needed (4% drawdown rule): £25k income = £625k pot; £40k income = £1M pot. Most UK savers underfund — average DC pension pot at 65 is only £107,300 (DWP 2023). Need significant lifetime contributions to reach comfortable retirement.

Wealth-building stages by age. 20s: emergency fund 3 months + start pension matching employer contributions + LISA for first home. 30s: increase pension to 15-20% gross salary + start S&S ISA + house deposit. 40s: max pension/ISA contributions + child savings (Junior ISA) + property considerations. 50s: catch-up contributions + simplify investments + plan retirement income (annuity vs drawdown). 60s: derisk portfolio + access tax-free lump sum + state pension forecast. Each decade builds on the last — early action transforms outcomes.