Planning for our future

gibbyni

I have worked out a retirement plan and just want to see what people think of it.

Im 30 and my wife is 28. Were currently directors in our own Ltd business (Last 2 years) before that the business was a partnership for 4 years. I have not worked outside my own business in over 7 years, wife for 5 years. Not to sure how much difference this makes to state pension.

We take our wage up to the tax limit, the rest we take as dividends.
We plan to retire when im 62, wife 60. So 32 years to save. At the min we have no savings and just started our pensions.

We plan to save like this.

State pension £4-£5k in todays money.
Pension £5-£6k in todays money (10k per year)
Isa income Stocks and Shares £3.5-£4 in todays mone (£7-£8k per year)

All in £12.5-£15k per year each in todays money

I have used the H&L calculator to work out

Each have same with

Pension

Starting payment £240 per month increasing by 2.5% each year.
Growth at 7% fees at 1%

Value in 32 years £330k (£140-£150k) less 25% lumps sum of £83K (£37k in todays money) Should provide annuity of approx £10k per year (5-6k today money)

ISA

Starting with £100 per month increasing by 2.5% each year
Growth 6%
Value in 32 years 133k
This should provide £7-£8k (£3.5-£4k todays terms) per year at 6% interest.

Isa and tax free lump sum would be used to enjoy ourselves and will reduce over time. Pension will be used to provide for day to day living.

Obviously these rates are all guess work but is anything obviously wrong?

gibbyni

anyone any thoughts?