Pensions Planning: The NUMBER

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  • TMFTP
    TMFTP Posts: 195 Forumite
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    whiteflag wrote: »
    Gatser now Ive picked myself off the floor can you perhaps explain where you came across So What's your number?

    Youve have hit the nail on the head- knowing what your aiming for is the single most important thing>:T

    It's a Prudential marketing campaign. Was run in Asia initially (has been since turn of year, perhaps even before), got pinched by another company for use in US, and has been copyrighted for use in Europe.

    May not be where he found it, of course - but it's fairly widespread now.
  • Gatser
    Gatser Posts: 624 Forumite
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    whiteflag wrote: »
    Gatser now Ive picked myself off the floor can you perhaps explain where you came across So What's your number?

    Youve have hit the nail on the head- knowing what your aiming for is the single most important thing>:T

    Touch of sarcasm Whiteflag?

    This is a basic and important question I agree, but I have spoken to hundreds of colleagues as a pension scheme administrator and it never ceases to amaze me how folks just ignore this estimation.

    I got THE NUMBER from a book written by Lee Eisenberg.
    The reviews suggest its $%$%$ (bad!) but I do agree with the concept of having some idea of what we are aiming for in life and knowing if we are on target.

    I appreciate we all have different standards and aspirations but I learn from talking to others and questioning my own standards and expectations.
    It takes my mind off depressing financial markets! ;)
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • shadydaz
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    My number based upon my current investments is NOT Enough. I have created a plan to increase my pension contirbutions by an average of 3% a year by natural wage inflation and pumping up my AVC yearly by a five spot each year. I currently pay £13pcm but this will be going up to £20 next summer, then the additional fiver annually.
    The minimum aim is to have at least Two-thirdsof of my income as a pension on retirement plus various other savings/investments.

    I am not banking on a state pension to suppliment this either.
    Was in debt £23k- Not now (12/07-12/10):T
    Did smoke- Not any more (26-02-11):j
    I am not perfect but everyone loves a trier don't they??:A
  • jonnyb1978
    jonnyb1978 Posts: 1,350 Forumite
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    shadydaz wrote: »
    My number based upon my current investments is NOT Enough. I have created a plan to increase my pension contirbutions by an average of 3% a year by natural wage inflation and pumping up my AVC yearly by a five spot each year. I currently pay £13pcm but this will be going up to £20 next summer, then the additional fiver annually.
    The minimum aim is to have at least Two-thirdsof of my income as a pension on retirement plus various other savings/investments.

    I am not banking on a state pension to suppliment this either.

    Very similar to me and a good way to save (I hope).
    About a year ago i got advice off here whether to join my pension schemes AVC. As it offers the whole lot as a tax free lump sum i joined at just £2 a week. And like you through natural wage increase, or infact any extra source of income (A debt paid off) i have increased this to £9 a week. All money i have not missed as it has been tied up beforehand or i simply did not have it. As said above my AVC lump sum when i retire will stand at around £20000 and by increasing this to £20 a week over the next 4 years it will stand at roughly £40000 with 25 years still until retirement. Then i have my normal yearly and a state pension (cough cough).

    I only have a short term goal at the moment and that is by the time im 35 i want my pension planner to be roughly £10000 a year pension (normal company pension) with a lump sum of £35000 (AVC). After that i shall reset my targets for the next 5 years.
  • gallygirl
    gallygirl Posts: 17,228 Forumite
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    I recently did a review of our finances and reckon that if I can carry on working and saving for another ten years we'll have enough to retire. Not sure I can stand it that long, so I'm aiming for a frugal five years of saving to make it even quicker - bit like those guys over on MFW and DFW. I did think of posting a "Retire 10 years early thread" but its a bit serious over here on the pensions board.......

    Please do start this thread, I for one would subscribe, I feel a little intimidated by the talk on here sometimes :o

    I haven't worked out 'the number' exactly as I know I could live easily on just over 1/2 current salary due to the amount I overpay on mortgage at the moment, plus work related costs. So, around £1,400 a month net to be safe (that's based on me being on my own, once bitten twice shy on the 'joint income' front so I will not factor OH into equation). Depending on pension performance may we well over or well under :eek: Need to get rid of mortgages to concentrate on cash savings & also revisit pension payments. Don't have a SIPP but do control what funds my co pension is in, also about to transfer 10k of other pension into a SIPP so destiny is in own hands :o

    My time on the DFW and MFW has ingrained certain behaviour in me so I could survive better on the same income than some others do (e.g. friends mum who still shops in Waitrose & M&S and is subsequently harder up than her mil who has never had much money but makes it go much further).

    I agree with those struggling to project without an end date for their spreadsheet :o
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • Gatser
    Gatser Posts: 624 Forumite
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    What does this refer to please?
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • Harry_Powell
    Harry_Powell Posts: 2,089 Forumite
    edited 17 December 2009 at 10:30AM
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    Gatser wrote: »
    What does this refer to please?

    MFW = Mortgage Free Wannabe, DFW = Debt Free Wannabe. They're two boards on MSE that attract quite a few people. The strategies there seem to consist of making your life miserable and scraping by in order to meet some financial target. In DFW the target is to get rid of debt and on the MFW the target is to get rid of a mortgage. It's been said many times before that it's the financial equivalent of crash dieting, and usually has the same outcome.

    Often you people on the DFW board confessing that they have 'fallen off the wagon' (and have blown a load of cash) just as crash dieters do when they participate on a super strict diet plan that they get bored with and end up gorging themselves.

    I can understand scrimping and saving and blitzing your finances for upto 1 year to get debt under control, but some of these guys are at it for 2 to 3 years with their debts and then move onto their mortgage for a further 5 years and then some of them realise that they have no retirement provision so spend a further 5 years or more blitzing that.

    All the time they're doing challenges like 'living off £1 per day" or "living off £4k per year" and IMHO are spending the better part of their lives living like paupers. In the example above, it could be that someone spends a total of 12 years 'blitzing' their debts, mortgage and pension and being miserable while they could have simply done what everyone else does and split their money and do all three at the same time, giving themselves a longer period for pension investment and therefore a longer period for the pension to grow. Plus they get to spend a little on themselves while they're young enough to enjoy it.

    They seem incapable of seeing that the net effect of spending 2 years exclusively paying down debt, 5 years exclusively paying down a mortgage and then 5 years exclusively paying into a pension is exactly the same as spending 12 years contributing to all three. Except that if anything goes wrong in year 6 in the second scenario, (say job loss or illness) at least they will have some pension savings that can grow while they look for work or get well.

    Much better surely, to save a little, overpay a little and spend a little to achieve your financial targets? :confused:
    "I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.
  • Gatser
    Gatser Posts: 624 Forumite
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    totally agree Harry.

    If more folks maintained a "Lifetime spreadsheet", they could see how their spending / saving / pensions were progressing and test this against their "NUMBER" to see if they were on target.
    Sadly....most just leave things until its too late to do anything about it, or (worse) do no planning whatsoever and just spend! (head in sand policy)
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • Gatser
    Gatser Posts: 624 Forumite
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    All the time they're doing challenges like 'living off £1 per day" or "living off £4k per year" and IMHO are spending the better part of their lives living like paupers.

    if anyone can tell me how to live on £4k (and be happy)....I can retire.... 20 years ago!:T
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is £26k pa)
  • Harry_Powell
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    Gatser wrote: »
    if anyone can tell me how to live on £4k (and be happy)....I can retire.... 20 years ago!:T

    I think their £4k has rather narrow parameters and consists of 'living' on an annual Sky TV subscription, mobile phone contract, takeaway food stipend and wii game purchasing allowance that comes to no more than £4k annually.
    "I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.
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