What is an Illustration?

An illustration is used in financial industries to help demonstrate how a product could perform or cost using real numbers. For a pension, refers to an example that shows you how your pension might work. The example an illustration might contain a set of hypothetical figures showing what your pension might be worth at retirement, depending on how long you invest for and how much you pay in. They can be helpful to show you how your pension could look at different points in the future.

Related terms
What is a Beneficiary
What is Consolidation
What is a Defined Contribution Pension (aka money purchase)