Pension Pot

[RobMCFC]

Yeah, should be doable without him investing another penny. Obviously usual caveats about how the stock market performs in the next 8-10 years apply

I actually put 3% of my wages in and the company put in another 5.5%.

When I said I don't put much in, I mean there are other things that I could do that I choose not to because I'd rather balance living now (as many holidays a year as I can get - i.e. that's paying for 4 of us!).

e.g. you can choose a company option where you chuck in 8% and they''ll match it, but I think that's too much to sacrifice when there's stuff to pay for now (even though the mortgage is paid off).

This talk of 300k to 500k is pie in the sky stuff*, fuelled by pension providers who are getting a cut from your deposits;) A £155k pot according to Which gives a comfortable retirement at state pension age, for one person who owns their home. I’d make a stab at adding 50% to the pot if you’re a couple.

The average UK pension pot, and what makes a good one

Telegraph Money reveals how much retirement income you need – and how to save for it

www.telegraph.co.uk

Obviously the more the better but every time I do my calculations I reckon 200k would do me plus whatever ‘er indoors adds. That’s at 67 though, just struggling to see how I can retire early.

*Unless that’s factoring in inflation

Yes, I agree with that. £200K sounds about right. Whilst living in retirement is expensive, I do think trying to get people to put in massive chunks of their "free money" is often unrealistic and you probably need less as you pass 70, 75, 80 etc.

I aim to retire somewhere between 61-63 and about £120K-£150K will be to fund my life before I hit 67, with the remaining £180K-200K to supplement the state pension.

 

[Chippy_boy]

I work it out as a bit more than that.

Currently our basic cost of living is around £2k per month. Roughly £1k on bills and fixed costs the other on food and other general 'stuff'.

I add to that another £1k per month which is the cost of maintaining the house and keeping a modest car running.

There is a bit of headroom in that but its before any holidays and pricey hobbies etc so £36k per year for the two of us. Note that cost doesn't really change if its just 1 of us.

And also remember that's net and that your pension income will be taxed, so you need more than £36k per year gross.

 

[knuckles]

This is from the Which? website as a rough and ready calculator - also based on any mortgage paid off.

 

[knuckles]

 

[knuckles]

 

[Scottyboi]

View attachment 35136

Wonder what the values will be in like 30 years time.

 

[knuckles]

Wonder what the values will be in like 30 years time.

The thing about the above illustrations from Which? is that they were published in February last year, of course now inflation is at an all time high at over 6% so a difficult one, for the last 30 years or so inflation has been pretty low and constant, God only knows what's in store for the next 30 years.

 

[Gareth Barry Conlon]

And also remember that's net and that your pension income will be taxed, so you need more than £36k per year gross.

Yes. Most people will want to retire well before state pension - 68 for me and i dont want to work beyond 60 so that is 8 years to fund with all of it taxed.

My pre Tax drawdown would need to be circa £47k per annum to have £35k to spend. Once i hit state pension age i get £9k per annum from the state but i'd have spent £376k by then. Even if I cut back the spending to £2k per month I will need to drawdown £30k per annum and a total of £240k before state pension kicks in.

Not sure how these calculations of sub £200k will work.

 

[Citizen of Legoland]

The thing about the above illustrations from Which? is that they were published in February last year, of course now inflation is at an all time high at over 6% so a difficult one, for the last 30 years or so inflation has been pretty low and constant, God only knows what's in store for the next 30 years.

all time high?

 

[hampshireblue]

Does this only apply when you have retired or is it something you are able to do while still working?

If you're working then you can pay upto £40k into your pension and should be doing so. Even if you have no personal income as is the case with my wife, we pay £2800 into her SIPP and get the £700 added a coupld of months later. It's of no benefit to me as I'm through the LTA.