Pensions Planning: The NUMBER

Bobinyorkshire

I had calculated that our monthly income needs to be between £3.2k and £3.5k. I now think it’s towards the higher end. This will be from 2 x NHS pensions so hopefully inflation will not run away from the annual uplift too far 

moving_forward

I'm using an inflation figure  of 3% on my retirement planning spreadsheet. I am many years away from retirement so have a while to fiddle with it 🤣
Currently it looks like we may need about £28k a year but that includes saving for capital expenditure.

kev2009

@moving_forward out of interest, what spreadsheet are you using? one you created or one from online that you have entered your figures into?

I keep looking at online calculators but the figures vary soo much in terms of what I'd get - my pension says x but online says y so hard to get a idea.  Like you still got a fair way to go before I reach retirement but would be nice to have some form of gauge to tell if I'm in the right direction /ball park

Kev

moving_forward

I created one but it's not based on any proper calculations so definitely not concrete. I'm adapting it as things change so I can see how it maps out against what really happens 

SpeedSouth

@kev2009 https://youtube.com/channel/UCIhIrlf1MZQNvW7C27dzUaQ

I came across this sheet you can download from the link in the comments.  Does a decent job of it all for you.

kev2009

Thanks, I tried it, weirdly, apart from the 0% line on the graph, all the other lines continue to go up slowly and not come down lol  It doesn't say what you would get as a pension each month, just the pot size which it more than I was using on moneyhelper site so going to put that figure in now - lowest one and see what that says

Kev

bluenose1

I use guiide.co.uk as well as my own spreadsheets. It’s free and I find it really helpful, you just input your info and it calculates by year your expected income and most tax advantageous method of withdrawal. It assumes inflation of 2.5% and is easy to change to check different scenarios. Great for those who don’t like spreadsheets or if you want a sense check if your spreadsheet is anything like mine. 

MallyGirl

another thumbs up for guiide.

moving_forward

I've just had a look at guiide but can't work out if retirement income is in today's money or not. I entered what I want to have in today's money but it didn't increase for inflation whereas it did for state pension?

DT2001

moving_forward said:

I've just had a look at guiide but can't work out if retirement income is in today's money or not. I entered what I want to have in today's money but it didn't increase for inflation whereas it did for state pension?

I think it ignores inflation for what you want in retirement so you need to calculate an inflation adjusted figure. It does presume growth on your pension pot.
I’m not sure how it calculates tax - I assumed no 25% tax free amount and my savings are in ISA’s - so need to dig further but a good, simple check of where we are.