Pension planning, so many questions with not enough answers?

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  • Triumph13
    Triumph13 Posts: 1,730
    First Anniversary Name Dropper First Post I've been Money Tipped!
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    Okay, I finally have time to run the numbers and you may find them re-assuring. I don't know where you got your figure of £27k from and whether it was based on what you actually spend, or just some daft idea about 'everyone needs x% of their final salary', but let's assume it's a real number. Furthermore I'll assume it's an after-tax spending number, not a pre tax income.
    Other assumptions:
    • You pay whatever NICs are necessary to get each of you a full SP of £8,100 per year
    • Wife's other pensions ignored as trivial.
    • Investments grow at an average of 4% real
    • You continue to pay into your pension at your current rate, increasing contributions in line with inflation each year.
    • You retire at 60 and both get your SP 8 years later
    • At retirement you take the 25% tax free lump sum and hold it as cash to help cover the bridging period to SP. This just earns interest in line with inflation.
    • Remaining 75% remains invested earning 4%. You draw out your personal allowance each year until SP.
    • At SP what's left is used for drawdown at a 4% rate.
    In order to get your desired £27k spending, on the above assumptions, you need to increase your contributions by...nothing at all.
    18 years at your current rate gets you to a little over half a million. 25% of that gives you £15,500 a year for 8 years which added to the £11,500 pa drawn tax free from the rest gives you your £27k pa for that period. Investment growth on the remaining 3/4 would be expected to be more than the £11,500 drawn so that would actually keep increasing and be up to around £410k by age 68. 4% drawdown from that plus two lots of state pension gives you £30k pa after tax from then on.
  • stolt
    stolt Posts: 2,865 Forumite
    thanks been looking at my wife and the state pension. I've read she needs 30 years NIC to obtain a state pension. She sbeen looking after our daughters for the last 10 years at home so i dont know if shes entitled to looking on the gov website it states. so i wonder if there is somewhere that can tell us how much she still needs to pay to get a state pension,

    Parents and foster carers

    Your situation on or after 6 April 2010 How to get credits You’re a parent registered for Child Benefit for a child under 12 (even if you don’t receive it) You get Class 3 credits automatically
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  • stolt
    stolt Posts: 2,865 Forumite
    edited 15 March 2017 at 10:54PM
    well we have set my wife up a GOV account and logged in under credits so it seems she has 24 years of contributions so it seems she has to pay at least 9 years.
    one thing we did notice was it says she was contracted out
    You were contracted out

    In the past you’ve been part of one or more contracted out pension schemes, such as workplace or personal pension schemes.
    When you were contracted out:
    • you and your employers paid lower rate National Insurance contributions; or
    • some of your National Insurance contributions were paid into your private pension schemes instead
    Listen to what people say, but watch what people what people do!!
  • GunJack
    GunJack Posts: 11,668
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    stolt wrote: »
    well we have set my wife up a GOV account and logged in under credits so it seems she has 24 years of contributions so it seems she has to pay at least 9 years.
    one thing we did notice was it says she was contracted out
    You were contracted out

    In the past you’ve been part of one or more contracted out pension schemes, such as workplace or personal pension schemes.
    When you were contracted out:
    • you and your employers paid lower rate National Insurance contributions; or
    • some of your National Insurance contributions were paid into your private pension schemes instead

    so you need to track down her c/o pension, or do you know who/what company it was with?
    ......Gettin' There, Wherever There is......

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  • xylophone
    xylophone Posts: 44,010
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    What was shown as your wife's "starting amount" for NSP as at 6.4.16?

    And yours?
  • GunJack
    GunJack Posts: 11,668
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    stolt wrote: »
    well we have set my wife up a GOV account and logged in under credits so it seems she has 24 years of contributions so it seems she has to pay at least 9 years.

    not necessarily, it depends on her starting amount as at 6 Apr 2016, what was that figure on the online checker??
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • stolt
    stolt Posts: 2,865 Forumite
    edited 17 March 2017 at 10:52PM
    hi sorry for not replying sooner, for some reason i dont get the notifications that anyone has replied.

    for my wife ive just checked online, i cant see a figure as such on there though
    Your National Insurance record

    Summary

    You have:
    • 24 years of full contributions
    • 24 years to contribute before 5 April 2040
    • 3 years when you did not contribute enough

    All years.
    2016-17
    Your record for this year is not available yet

    2015-16
    Full year
    You have contributions from
    National Insurance credits: 52 weeks
    These may have been added to your record if you were ill/disabled, unemployed, caring for someone full-time or on jury service.


    my wife has just googled the company and its been resolved. Not sure how we go about finding who controlled the pension scheme or is that kind of thing just gone. Do we need to contract her back in

    thanks for your patience with all the questions
    Listen to what people say, but watch what people what people do!!
  • mgdavid
    mgdavid Posts: 6,705
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    stolt wrote: »
    .............
    my wife has just googled the company and its been resolved. Not sure how we go about finding who controlled the pension scheme or is that kind of thing just gone. Do we need to contract her back in

    thanks for your patience with all the questions

    Do you mean dissolved?
    Try the pension tracing service
    https://www.gov.uk/find-pension-contact-details
    The questions that get the best answers are the questions that give most detail....
  • stolt
    stolt Posts: 2,865 Forumite
    mgdavid wrote: »
    Do you mean dissolved?
    Try the pension tracing service
    https://www.gov.uk/find-pension-contact-details


    i do, thankyou
    Listen to what people say, but watch what people what people do!!
  • atush
    atush Posts: 18,713
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    It wont be gone, it will be out there somewhere.

    What are the starting amounts for both SPs?
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