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Pensions Planning: The NUMBER

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  • Gatser
    Gatser Posts: 624 Forumite
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    Gatser wrote: »
    ...and it's creeping up!

    Average NUMBER now £28,200.

    What's yours?


    The average NUMBER now stands at £27,500

    With a Drawdown/Annuity rate of (say) 5%, this means you would need
    a pension fund of £550k
    Food for thought eh?
    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)
  • lemma1968
    lemma1968 Posts: 1,379 Forumite
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    Gatser wrote: »
    With a Drawdown/Annuity rate of (say) 5%, this means you would need
    a pension fund of £550k
    Food for thought eh?
    :eek::eek::eek::eek::eek:
    2013 TARGET £30k
    2012 £26500 paid off.
    2011 £22750 paid off
    2010 £19800 paid off
    2009 MBNA Cleared 25.09.09 £34391.33 PAID OFF
    DFW Nerd 612 Proud to be dealing with my debts
  • Gatser
    Gatser Posts: 624 Forumite
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    Gatser wrote: »
    The average NUMBER now stands at £27,500

    With a Drawdown/Annuity rate of (say) 5%, this means you would need
    a pension fund of £550k
    Food for thought eh?

    The £27,500 can be broken down into:
    Food £6,000
    Car/Transport £5,000
    Bills/Utilities £5,000
    Holidays/Leisure £6,000
    Clothing/Cash/Other £3,000
    Repairs/replacements £2,500

    Quite a comfortable existance on this I would say.... do you agree?

    With greater flexibility in retirement, its certainly possible to get bargain holidays and the £6,000 is probably too generous.
    Not sure about growing our own sprouts on the allotment though...

    Downsized house will reduce utility bills....

    Any other comments / suggestions?
    As I chat to more retired friends my NUMBER reduces further!

    (...and then I reflect on the VERY RETIRED (deceased) friends that were putting off retirement because they had set their NUMBER too high...)
    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)
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
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    But do all your figures above relate to an individual or a couple?
    The only thing that is constant is change.
  • Linton
    Linton Posts: 17,363 Forumite
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    Gatser wrote: »
    The average NUMBER now stands at £27,500

    With a Drawdown/Annuity rate of (say) 5%, this means you would need
    a pension fund of £550k
    Food for thought eh?

    Not quite right I think - on the plus side there is the state pension which with SERPS/2nd pension could provide say £15K/year for two people.

    On the negative side, if you want to match inflation the Annuity rate would be about 3%. So taking both into consideration you need a pension pot of about £420000 in today's money, or about £0.75M in 20 years time with inflation of 3%.
  • Charterhouse
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    in 25-30yrs time I hope to be looking at:-

    Upfront lump sum of 250k on a pension pot of £1mio.
    £750k drawn down at approx 8% a year to provide £60k a year
    £350k ISA pot drawn down at the same rate to provide another £28k a year.

    I am expecting things to cost a LOT more by then. I reckon that's equivalent to about 45k a year in today's money, i.e. just under the higher rate tax threshold.
  • babyblooz
    babyblooz Posts: 1,122 Forumite
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    Have you asked for a state pension forecast to check how much you might get from S2P (second part of state pension)? It has been recently rejigged so the lower paid will benefit.A full Serps/S2P record for a person retiring now willl generate more than £10,000 in some cases, much higher than pension credit.

    Apply for forecast here:

    http://www.direct.gov.uk/en/Pensions...st/DG_10014008

    EdInvestor, I applied for a pension forecast about 3 years ago. Would it be worth my while applying for a new one? I worked for a few years at the of my working life, before the children came along, and then I worked again full time from 40, when I began to pay into a final salary pension. I may work until 60 (or 65) but dont really know as I am on a succession of temporary contacts that keep being renewed (touch wood|!). I did qualify for the basic pension, plus some extra bits and bobs from the old graduated pension stuff I think, and I came away with around a hundred quid a week or so.

    Am I likely to be better off pension wise than I previously thought?
    :hello: :wave: please play nicely children !
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    babyblooz wrote: »
    EdInvestor, I applied for a pension forecast about 3 years ago. Would it be worth my while applying for a new one?
    Am I likely to be better off pension wise than I previously thought?

    Worth doing an update I'd have thought, not least because the rules have changed in favour of women.So you may find you are bettter off with a bigger contribution from Serps/S2P.:)
    Trying to keep it simple...;)
  • babyblooz
    babyblooz Posts: 1,122 Forumite
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    ooooooooh! right then, I will send for an updated forecast! I am a bit miffed, because when I started, I thought I would be able to retire at 60, so its a bit like starting a game of footy and changing the rules half way!
    :hello: :wave: please play nicely children !
  • gallygirl
    gallygirl Posts: 17,228 Forumite
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    It really is very easy to get a quote, but somewhat annoying that I couldn't see what would happen if I stopped working at 60. I wonder if I multiplied my salary by the number of years till I'm 60, then averaged it out over the years to 65 then used that as my salary, if that would get me anywhere near :think:
    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"
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