My current pension statement value, good or bad for my age?

d4005 · 3 June 2008 at 5:14PM

Dithering_Dad wrote: »

Brilliant. Scrimp and save while you're working then scrimp and save when you retire, hoping that you die before your money runs out. What a great life you'll have lived!

I haven't had to scrimp at all (bought a new car in August and averaging two big holidays a year and buying gadgets like they're going out of fashion), and don't think my planned £15k retirement fund could be considered a low amount. I'll have no bills to pay with it.

chesky369 · 3 June 2008 at 5:32PM

"I'll have no bills to pay with it"

Blimey! Let us all know your secret - no 'phone, gas, electric, council tax, water. Where will you be living - we'll all be there.

EdInvestor is right about the NI contributions - I really thank the heavens every Monday morning when £154 goes into my savings account - and I didn't pay all my contributions, having been an at-home mother for part of my life. Could have been more.

What you probably don't understand is that you might have to get your retirement income from several small-ish sources which build together for a decent income for life. In seven years time, your £15k per year might not look so healthy - price of bread's going up.

Dithering_Dad · 3 June 2008 at 5:40PM

in 1960 a mini cost £497.
in 1970 a mini cost £720.
in 1980 a mini cost £2,796
in 1990 a mini cost £6,595

Essentially it's the same design (pre-BMW revamp), only inflation has changed. Your £15k a year looks ok this year (though it is not far from what a 22 yr old would expect to receive on minimum wage) but what will it look like when you turn 70?

It's your life, so do as you wish. I'm just surprised that someone would have such low aspirations.

p.s. as far as your "not expecting to live beyond 65 due to diet, exercise, etc." Have a look at this link:
http://en.wikipedia.org/wiki/Cyril_Smith

Old Cyril Smith (Rochdale MP) is 80 and had an estimated weight of 21 to 28 stones.

This footballer was 22 when he had a heart attack. http://news.bbc.co.uk/sport1/hi/football/europe/6964586.stm

My point is that you just don't know how long you've got, regardless of how fit/unfit you think you are.

bryanb · 3 June 2008 at 5:43PM

At age 43 it would be normal to have 20+ years of NICs. When the qualifying years go down to 30 you would only need 10 more years for a full state pension. How many NICs years have you got?

d4005 · 3 June 2008 at 5:59PM

bryanb wrote: »

At age 43 it would be normal to have 20+ years of NICs. When the qualifying years go down to 30 you would only need 10 more years for a full state pension. How many NICs years have you got?

My last tax year in the UK was 1997, so I think I have around 13 or so.

In the last couple of years I've been earning a ridiculous amount of money, so I've been able to save in excess of £20k per year without having to scrimp even in the slightest. On Friday last week I got a 55% pay rise so there's no knowing how much I'll be tucking away over the next few years.

I feel I might have over-represented this amount of £15k as being "my official retirement amount". It was just a figure I plucked out of my head as being the amount I might decide, in 7 years time, that I'll calculate as my retirement amount. It might be 25k in 5 years time, it might be 20k in 9 years time. It's the principle of the thing that I really wanted to get across, and that being that when the amount I want to retire on (after calculating what I need to pay my bills and enjoy a relaxing non-scrimping life), meets the amount I'm earning in interest from my savings, then that becomes my time to retire. Also, when I said "no bills", I meant "no long-term debts" such as mortgage or HP.

EdInvestor · 3 June 2008 at 6:03PM

I fear the OP is being seriously unrealistic about his likely longevity in the light of recent changes in health and lifestyle.

He expects that he can save enough in a working life of 30 years to fund a retirement lasting possibly nearly 40 years - and all without the benefit of a basic income from a guaranteed inflation-proofed state pension.

Fortunately Governments are aware that people can behave like this, so they normally force them to save by deducting pension contributions from the wage packet.

margaretclare · 3 June 2008 at 6:11PM

Reading the OP's utterings, the words 'cloud cuckoo land' come to mind.

I have never, never regretted paying full NI contributions and now get a full state pension. I know many women who didn't pay in and now do regret it most bitterly.

IIRC to get a full inflation-proofed state pension would take a savings pot of some £100K.

EdInvestor · 3 June 2008 at 6:14PM

margaretclare wrote: »

IIRC to get a full inflation-proofed state pension would take a savings pot of some £100K.

Today it would cost 150k for a man and as much as 175k for a woman.

That's the longevity effect.....

My current pension statement value, good or bad for my age?

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