Help with my pension illustration

worcester1

Hi guys,

Can you please tell me if I have to start worrying and look at other ways of saving for retirement?

I am 37 years old and contributing £300 p/m in my company's Global Equity Index fund operated by Legal & General.

My projection shows a £7,560 p/a pension (today’s money) at retirement age.

The return net rate for the GEI performance;

Previous 5 years = +15.2%
Previous 3 years = +10.5%
Previous 12 months = -5.5%

The assumed returned on my investment to normal retirement date is increase of 2.5% p/a

The question I want to ask can I expect to get more than the expected £7,560 and will this along with my expected state pension of £142 be enough?

Ideally I want an income of at least £15K p/a in retirement.

Thanks in advance

dunstonh

You are 37 years old. Any illustration is going to be a wild estimate until you start getting closer. For example that "projection" assumes 7% p.a. with a deduction of 2.5% for inflation.

They are fair long term averages but the differences will be volatile in different periods.

At the moment though you have 100% going into one fund. That is not good investing. Its a medium/high risk fund as well.

along with my expected state pension of £142 be enough

That must be including the second state pension as the basic is £90pw.

Ideally I want an income of at least £15K p/a in retirement.

obviously the SMPI basis illustrations you are getting from L&G are for half that amount but they will assume you will never top up your contributions. As long as you increase your payments every year then you should find the end result increases.

worcester1

Thanks Dunstonh

Yes the £142 p/w does include a 2nd state pension and my contribution will increase just a bit year on year when I get my standard 3% cost of living rise each year.

I am already contributing a maxinimum 6% which is also matched by my employer.

Do I have to worry and starting putting more aside for retirement?