Pensions Planning: The NUMBER

cns06

Its going to be hard but I think we can do it. We will need some luck though and in worst case we will retire at 55 but I still think 50 is not being unrealistic.

Current plan is have enough to fund everything from 50 to 60 in savings at age 50.
Have pension as close to 100% of target by 50 - this we will probably miss - I think 70-80% is more likely. However leaving pension alone for 10 years I hope it will make that missing c20%.
Build our business from around 45 to 50 and sell it! This would be a massive bonus as I have not taken this into consideration in any of my estimates.

Northamptonblue

We are a couple where I am due to retire next year at 59 and younger wife will do the same in a few years at 55. I always wanted to get an inflation linked 30K a year and we are on track for a little over that. In addition we have savings of a little over £200K. Having avidly read the comments on here for some time, this all seems very comfortable so why am I so full of doubt? Have others felt this way?

blobby8

Our number is £18500 pa.
We have a house.

Deneb

Northamptonblue wrote: »

We are a couple where I am due to retire next year at 59 and younger wife will do the same in a few years at 55. I always wanted to get an inflation linked 30K a year and we are on track for a little over that. In addition we have savings of a little over £200K. Having avidly read the comments on here for some time, this all seems very comfortable so why am I so full of doubt? Have others felt this way?

Yes, very similar position. I will be 60 in March next year and have decided that I am retiring in early April. I have two FS pensions that will give us just over 27K a year and 55K in a SIPP intended to bridge the gap to SPA.

Mrs D, 3 years younger than me, already has an 8.5K FS pension in payment and intends to carry on working part time until 60, currently earning 7.5K a year. She also has a SIPP worth 50K to help bridge the gap to SPA. We have almost another 200K in savings and investments, although 36K of this is earmarked to pay off our remaining interest only mortgage in 2021 (possibly earlier depending on interest rates, but currently its earning us 2.5 times more in interest than its costing to service the loan).

I still worry whether we have enough and much like the OP in this thread https://forums.moneysavingexpert.com/discussion/5571971
am struggling with a psychological barrier to spending capital, even though I know its what we saved it for.

So, I can't tell you that it all worked out OK. A bit early for that, but I fully understand your feelings!

Northamptonblue

Thank you Deneb. Always nice to know that others are thinking what I am thinking. I should have added that we own our house outright and that the pensions are inflation protected up to 5%. Younger son is in the fourth year of a six year degree but our contribution to his expenses is already saved. I am normally a very pragmatic guy so I kind of know that we have more than enough. Both of us have had parents who have been seriously ill this year so my own mortality has been on my mind. I think I am just over thinking the whole thing.

bigfreddiel

blobby8 wrote: »

Our number is £18500 pa.
We have a house.

That's not enough. To be comfortable you need £30k after tax joint income, no mortgage, and at least a couple of hundred k in an investment ISA.

fj

Triumph13

bigfreddiel wrote: »

That's not enough. To be comfortable you need £30k after tax joint income, no mortgage, and at least a couple of hundred k in an investment ISA.

fj

Am I missing something? That reads like you meant it seriously?

mforr64

bigfreddiel wrote: »

That's not enough. To be comfortable you need £30k after tax joint income, no mortgage, and at least a couple of hundred k in an investment ISA.

fj

I run a family of 4 - 2 adults and 2 teenagers on 25K net, have a small mortgage and still manage to save a substantial amount. We feel we live well on that money, I have worked out we need 16K to manage a similar lifestyle by 2024. We will have more than that from our pensions so by the time the SP's kick in in we will be living like royalty. We have been MSE's since 2007 when my husband became redundant (he is in work but doubt his wage will ever be as high as it was in 2007 by the time he retires in 2024) and have lived cautiously ever since, enjoy the challenge and our kids know the value of money & thankfully materialism just washes over them.

Triumph13

mforr64 wrote: »

our kids know the value of money & thankfully materialism just washes over them.

I took my boys to the new Star Wars movie today as a Xmas treat. We cycled in to the cinema and called in at a £1 shop for confectionery on the way there. When we got to the cinema you should have heard the outrage from my 11-year-old when he saw they wanted £13.90 for star-wars-themed popcorn and a soft drink! It gave me a definite "my work here is done" feeling.

jerrysimon

My number is £1500/month which is made up of two DB pensions £17.5k and £2.5K plus 3X lump sums to go with them. It better be enough as I handed in my notice this week and leave early next March

House paid off kids flown the nest.

A 56 I could stay on to 60 and add another 4K to that, but my state of mind and health is more important. As others state when we get to SP age we will live like kings, though I have not factored that in as who knows what the rules will be then. It will probably be means tested lol

Jerry