Dumb question: Pension projection jumped massively after a lump sum and fund switch. Is it accurate?
Forgive my ignorance, but financially I'm dumb as soup.
Earlier this year, I transferred a lump sum of €10,000 into my pension (effectively capping my 20% tax-free allowance for last year). Around the same time, I also switched my entire pension balance into a different, higher-risk fund. yes i'm a stupid gambler.
A couple of days later, once the system updated, I noticed my projected value at retirement jumped to €621,000 (up from around €120,000 previously).
My question is: how do I interpret this moving forward? Does the system's calculator assume I am going to continue contributing that maximum 20% lump sum every single year to hit that €621k target, or is it just projecting based on my new fund's growth rate and my normal monthly contributions?
Thanks in advance!
