Retirement Planning / Pensions

[Genie]

30 minutes ago, ender4 said:

Ok, mortgage will be paid off and want a nice lifestyle.  So say £40k for us as a couple, £20k each net cash in the bank every year. Holidays abroad will probably be the biggest expense.

What sort of pension pot do i need? 

Full UK state pension is about £10,500 a year so you’re half way there already.

[trekka]

36 minutes ago, ender4 said:

Ok, mortgage will be paid off and want a nice lifestyle.  So say £40k for us as a couple, £20k each net cash in the bank every year. Holidays abroad will probably be the biggest expense.

What sort of pension pot do i need? 

Looks like I've just been beaten to this but don't forget about the state pension to top up any other pension funds you may have, assuming you qualify (e.g. have built up NI contributions).

Don't rely on that though, keep on building and topping up other pension funds where you can. 

Edited June 4, 2023 by trekka

[Xela]

2 hours ago, sidcow said:

Right. I've just sold the house. What is it I need to do next again? 

Transfer the funds to me, and i'll double your money. Honest. 

[Xela]

40 minutes ago, ender4 said:

Ok, mortgage will be paid off and want a nice lifestyle.  So say £40k for us as a couple, £20k each net cash in the bank every year. Holidays abroad will probably be the biggest expense.

What sort of pension pot do i need? 

£40k net? £50k gross. They say x25 of your yearly expenses for a comfortable, so thats £1.25m in total. 

As Dave says, state pension is about £10k each (assuming you have made all your contributions) so thats brings your requirement down to about £30k per annum x25 = £750k

That doesn't have to be 100% pension - thats just a rough net worth figure - can be made up of pension, cash savings and any money freed up from downsizing property. 

[Genie]

1 minute ago, Mandy Lifeboats said:

Full UK state pension is £156 per week.  That’s around £8000. 

There’s 2 tiers it seems.

Basic State pension for men born before April 1951 or a woman born before April 1953 is £156 a week.

New state pension for people born after those dates above is £203 a week.

[mjmooney]

1 hour ago, Genie said:

Full UK state pension is about £10,500 a year so you’re half way there already.

Yep. I wouldn't like to have to live on just the state pension, but it's made an appreciable difference when added to our workplace pensions. Only thing is, people are having to wait longer and longer to get it. 

[Mandy Lifeboats]

1 hour ago, Genie said:

There’s 2 tiers it seems.

Basic State pension for men born before April 1951 or a woman born before April 1953 is £156 a week.

New state pension for people born after those dates above is £203 a week.

I hide my original post when I realised this.  I doubt there are many people n this discussion who it impacts. 

Edited June 4, 2023 by Mandy Lifeboats
Speeling mishsteaks

[Rugeley Villa]

I think some don’t realise how much you actually need for a comfortable retirement. It doesn’t have to be expensive , but you need money if you want to do stuff . Plus then you’ve got to think about leaving the kids a bit unless you say they can have the house and that’s it **** em’ 

[sidcow]

2 hours ago, ender4 said:

Ok, mortgage will be paid off and want a nice lifestyle.  So say £40k for us as a couple, £20k each net cash in the bank every year. Holidays abroad will probably be the biggest expense.

What sort of pension pot do i need? 

 

 

 

 

Edited June 4, 2023 by sidcow

[Mandy Lifeboats]

In a few months I will be lucky enough to be semi retired at 53.  I shall do a few bits of part time work but my days of full time work are over.  

I have a mixture of investments that I can draw upon if needed.  I get my final salary pension at 60.  A smaller index linked occupational pension is payable at 67 along with the state pension.  

The thought of working full time until 67 horrifies me.  

I honestly think the Facebook/instagram generation are in trouble.  Many try to lead the fake lives they see others portraying.  You don’t need a new car every year.  You’ll probably enjoy 2 weeks  in the Canary Islands as much as a long weekend in Dubai.  You don’t need a solid oak dressing room with chrome coat hangers.  

We only get one life and I intend to enjoy it.  But I do shake me head in despair when I hear people running up massive credit car bills in order to buy the latest I-phone or a £600 handbag for their besties wedding.

It might be nice to have these things.  But the most precious thing we have is time.  I’m incredibly glad that in my 20s I choose paying off the mortgage instead of buying the very latest laptop with 512k of memory, , buying 154 Lilliput Lane cottages for Mrs Lifeboats or proudly walking around Wolverhampton in a red leather jacket from the Thriller video. 
 

 

[sidcow]

3 minutes ago, Mandy Lifeboats said:

or proudly walking around Wolverhampton in a red leather jacket from the Thriller video. 

I was with you until this point. 

 

[Mandy Lifeboats]

7 minutes ago, sidcow said:

I was with you until this point. 

 

Shamon!!!’

[sidcow]

YOLO.

Yes, YOLO and that doesn't end when you are 28. You get to 58 and still feel fine and dandy with the world and enjoying yourself but start thinking that maybe you wouldn't like to spend the next 20 years working your fingers to the bone. 

And regardless of what you may have thought at 28 you really don't feel like life is anywhere close to over and would like to continue participating in it. 

YOLO is true the whole of your life, not just the first third of it. 

[chrisp65]

5 minutes ago, sidcow said:

YOLO.

Yes, YOLO and that doesn't end when you are 28. You get to 58 and still feel fine and dandy with the world and enjoying yourself but start thinking that maybe you wouldn't like to spend the next 20 years working your fingers to the bone. 

And regardless of what you may have thought at 28 you really don't feel like life is anywhere close to over and would like to continue participating in it. 

YOLO is true the whole of your life, not just the first third of it. 

One of the kids in my office is late twenties, and can’t afford a house. He’s being forced to look further and further away to get something he can afford.

I discovered this week that fairly regularly, two or three times a year, he hires a super car for a weekend treat, because you only live once.

No idea how much it costs to rent a Lamborghini Urus, but that’s what he was off to Bristol to drive around in this weekend.

I will confess, my sympathy for his housing problems did kinda diminish.

 

[PaulC]

1 hour ago, Genie said:

There’s 2 tiers it seems.

Basic State pension for men born before April 1951 or a woman born before April 1953 is £156 a week.

New state pension for people born after those dates above is £203 a week.

Trouble is what age will you get it. Its soon to raise to 67 then 68 if born after 1970. 

[ferguson1]

Cards on the table, I really haven’t looked into or wouldn’t have a clue about investing or additional pension options? Head in the sand really.

I’m 48 and have been a civil servant for almost 28 years at various grades. No real idea of my workplace pension pot at present but I know that monthly contributions have and continue to be made.

Mrs F is 46 and been a primary school teacher for approximately 24 years. Again, paying into a workplace pension.

We have two kids, aged 11 and 8, and have about 90k remaining on our mortgage. We’re 12 months into a five year fixed.

We have no other debt. No car loans, credit cards etc and have approx 12k in various savings accounts and it’s there for the kids, holidays, emergencies or updating things that break etc. 

Our monthly outgoings pretty much take up what we bring home, apart from a few hundred pounds spare, which we put away for several holidays each year to Devon or Cornwall.

We’d both like to stop work in our fifties or sixty at the latest. Not really sure what we should be doing additional or where to start?

Feel a bit naive and out of my depth with this kind of thing and just keep plodding on.

 

[sidcow]

20 minutes ago, ferguson1 said:

Cards on the table, I really haven’t looked into or wouldn’t have a clue about investing or additional pension options? Head in the sand really.

I’m 48 and have been a civil servant for almost 28 years at various grades. No real idea of my workplace pension pot at present but I know that monthly contributions have and continue to be made.

Mrs F is 46 and been a primary school teacher for approximately 24 years. Again, paying into a workplace pension.

We have two kids, aged 11 and 8, and have about 90k remaining on our mortgage. We’re 12 months into a five year fixed.

We have no other debt. No car loans, credit cards etc and have approx 12k in various savings accounts and it’s there for the kids, holidays, emergencies or updating things that break etc. 

Our monthly outgoings pretty much take up what we bring home, apart from a few hundred pounds spare, which we put away for several holidays each year to Devon or Cornwall.

We’d both like to stop work in our fifties or sixty at the latest. Not really sure what we should be doing additional or where to start?

Feel a bit naive and out of my depth with this kind of thing and just keep plodding on.

 

My guess (and it is literally a guess) would be that Civil Servants and Teachers get much better pensions than you get in the commercial world. Possibly even final salary still. 

[ender4]

2 hours ago, Xela said:

£40k net? £50k gross. They say x25 of your yearly expenses for a comfortable, so thats £1.25m in total. 

As Dave says, state pension is about £10k each (assuming you have made all your contributions) so thats brings your requirement down to about £30k per annum x25 = £750k

That doesn't have to be 100% pension - thats just a rough net worth figure - can be made up of pension, cash savings and any money freed up from downsizing property. 

We would get £25k tax free allowance between the 2 of us so only need £45k gross?  

State pension of £20k, so need another £25k. £25k x25 is £625k. So that’s just over £300k each required either in a pension pot or savings by the time we retire. Is that about right?

 

Ok, I think that might be doable once kids have grown up and don’t have a mortgage anymore.

[ferguson1]

2 minutes ago, sidcow said:

My guess (and it is literally a guess) would be that Civil Servants and Teachers get much better pensions than you get in the commercial world. Possibly even final salary still. 

 
Not really sure how our workplace pensions compare but we don’t have the privilege of final salary pensions. That privilege was unfortunately removed/changed in both our jobs some time back.  It’s career average now.

[Genie]

I missed the final salary scheme where I work by about 6 months which is gutting. They do pay a lot more into it though.

I have a DC pension where I pay 6% and my employer puts 10% on top so it’s still a pretty good deal.