Pensions Planning: The NUMBER

DairyQueen

k6chris wrote: »

Perfect Plan Prevarication?? Sometimes you just have to jump and see what happens!

Ha! OH is an accountant. Absolutely zero chance of any jumping - with or without parachute.

DairyQueen

Flim wrote: »

Ref inflation figures used for planning. I use 2 rates, one for “expenditures, and another lower figure for interest and pension increases. They can be adjusted but are “linked” so that the income based inflation is always about 75% of the “costs/inflation” rate. My worst case assumes 4.5% annual inflation, (approx 3.5% on incomes), and my “best case” scenario assume 3.5% inflation, (approx 2.5% on incomes)....

I also use different figures for investment growth and inflation. I never considered applying different inflation rates to different types of expenses though.

ger2000

Hi
Thanks for the reply,we have a simple life of eating out once a month,no world holidays but a couple sun holidays in Europe.Ww also have no other dept but like to treat the grandchildren .i suppose it is difficult to work out what is enough.Thanks again.

coyrls

ger2000 wrote: »

Hi
Thanks for the reply,we have a simple life of eating out once a month,no world holidays but a couple sun holidays in Europe.Ww also have no other dept but like to treat the grandchildren .i suppose it is difficult to work out what is enough.Thanks again.

The starting point would be what you spend now, then subtract any expenses that you won't have in retirement (e.g. commute to work) and then add any additional expenses you expect in retirement (e.g. additional heating for your house).

Fatbritabroad

I'm aiming for a million outside of property. And want to be financially independent though not necessarily quit work at 55 if I can. May be starting a family though at 38 so I can see that going out the window. I'm torn atm between putting more in my pension for the tax break while it lasts (heard a very interesting interview with the chap that came up with the Lisa on the meaningful money podcast which makes me think this won't be around for that much longer) and building more liquid assets to allow me to cut back earlier and allow my pension to grow for longer. Atm at 4% growth I'll be at over half a mill by 50 and should have 200 to 300k in isas though I'm likely to still have a mortgage of some kind if I have that . Debating whether to leverage my relatively low mortgage atm to buy to let for income. Decisions decisions...

k6chris

DairyQueen wrote: »

Ha! OH is an accountant. Absolutely zero chance of any jumping - with or without parachute.

Ha indeed! Just don't confuse a bigger spreadsheet with a more accurate one. GIGO etc!

Stubod

To calculate my future expenditure I can refer back to 20+ years of actual expenditure broken down into about 12 basic categories. Some are "essential", (eg utilities, council tax, food etc), the others are "none essential", (eg holidays, "other spends"). From these you can then add (or take away) other items as you see fit. eg a £10k spend every 3 years for replacing cars or "special" holidays etc.

atush

I will have a pension of about 23-24k before tax.

Is this a DB pension? How much is it being reduced for taking it so early?

have you thought about a DC pension/Sipp and whacking in as much in the next 2 tax years as you earn? You can use yoru savings and get a tax boost. Meaning perhaps you can delay taking your DB pension for a year?

Coppice10

Having read up on this post today, do you all create your own spreadsheets? Or is there a link to a basic one that I could start with?
Many thanks - new to all this!

MallyGirl

I just started my own - but have been tracking my bank account in excel for 20 odd years.