Pensions Planning: The NUMBER

LAPORTS1

Understandable, but perhaps not optimal from a tax perspective

Very true. I thought about rearranging the current mortgage payments but I do like the peace of mind of wholly owning my own place.

atush

LAPORTS1 wrote: »

Just thought I'd push this thread to the front again with a small twist.

Current Number
Age : 44
Total Saved : £152,000
Saving ~£900 per month

Target Number
Retirement Age : 60
Target Retirement Number: £650,000

I'll be up-ing the monthly contribution once the mortgage is paid off in 6 years.

Interested to see what everyone else's situation is

Where is the 152K saved?

Spouse? Dependents?

atush

demonloop wrote: »

Current Number
Age : 40
Total Saved : £300000 (in BTL mostly)

Target Number
Retirement Age : 55
Target Retirement Number: £1.2m

No mortgage since 2016, and with a saleable business (hopefully)

If I owned a business, i'd not be in BTL (tax inefficient) and I'd be making company contributions to my pension instead.

LAPORTS1

Where is the 152K saved?

Spouse? Dependents?

It is saved across several SIPPs invested in various mid-to-high risk fund at the minute.

There is also a rainy day fund of about £5000 and a small savings account

Spouse and 3 kids (3rd level education on the horizon)

atush

So is some of that money set aside for helping the kids thru Uni?

5K is far too small an emergency pot IMHO.

Northamptonblue

This was always my favourite thread when I was debating early retirement so thought I would join in after retiring 12 months ago at 59. Wife still working so we have her work related costs and are still running two cars. We also have another house close to elderly relatives with a running cost of about £4K a year (we do not rent it out). This years spend came in at £31K. We have deliberately not skimped because I wanted to see if the £33K budget was realistic. Clearly it is and any excess once we go to one car and one house will be spent on days out and weekends in hotels which is a favourite thing for both of us. We do have a couple of major holidays planned when wife retires and we can choose our dates (she is a school teacher). Savings, sale of the second house plus downsizing should leave around £250K so plenty of leeway to be a bit extravagant. Income is DB and state pension, rising to over £40K when wife reached SPA. Younger son just started his sixth year at uni. I think we are very lucky and we just hope that we can enjoy some good health to let us enjoy retirement.

JoeEngland

Gatser wrote: »

The NUMBER is how much income you need to "live comfortably"
So What's your number?
Very important for pensions planning, to know what you are aiming for.

My Number? (for a couple)
I calculated: £22,000
based on
Food £5,000
Car/transport £5,000
Bills/Utilities £4,500
Holidays/Leisure £4,500
Clothing/Cash/Xmas/Other £2,000
Repairs/replacements £1,000

For us it's 17-17.5k a year: 11-11.5k for essentials and 6k for discretionary spending, with some contingency available on top of that. The wife is likely to work PT after I give up work, and I might consider some PT work, or if the finances got a bit tricky I might try and do some occasional contracting.

demonloop

atush wrote: »

If I owned a business, i'd not be in BTL (tax inefficient) and I'd be making company contributions to my pension instead.

The BTLs are in a separate Ltd Co, and I draw no income from it. The income will accumulate and be reinvested.

My main Business makes a company contribution to my pension every year, but I feel more comfortable generally in BTL, and I really enjoy managing it. I wouldn’t be comfortable with 300k-1.2m in the markets. Each to their own though.

unkle

Current Number
Age : 46
Total Saved : £488,000 in SIPP, £190,000 in ISA's
Saving ~£600 per month

Target Number
Retirement Age : 55
Target Retirement Number: £850,000

Pay little into pension now due to tax inefficiency after £10k, so filling up ISA's (S&S).

DairyQueen

unkle wrote: »

Current Number
Age : 46
Total Saved : £488,000 in SIPP, £190,000 in ISA's
Saving ~£600 per month

Target Number
Retirement Age : 55
Target Retirement Number: £850,000

Pay little into pension now due to tax inefficiency after £10k, so filling up ISA's (S&S).

Have you calculated your likely income needs?