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Pensions Planning: The NUMBER
in Pensions, annuities & retirement planning
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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?
2012 £26500 paid off.
2011 £22750 paid off
2010 £19800 paid off
2009 MBNA Cleared 25.09.09 £34391.33 PAID OFF
The £27,500 can be broken down into:
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...)
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%.
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.
Apply for forecast here:
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?
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.:)