35 no pension.

bristol_pilot

Yes, you would 'only' need a pension of £4,000 per year. To get this, you would need a pension pot of about £80k (which you say goodbye to when you buy the annuity), this is achievable by saving about £200 per month for 30 years.

Which would you rather have, £4k per year pension starting at age 65 or arriving at age 65 with £80,000 in the bank which can be invested for income and still retain access to the capital?

Linton

bristol_pilot wrote: »

Yes, you would 'only' need a pension of £4,000 per year. To get this, you would need a pension pot of about £80k (which you say goodbye to when you buy the annuity), this is achievable by saving about £200 per month for 30 years.

Which would you rather have, £4k per year pension starting at age 65 or arriving at age 65 with £80,000 in the bank which can be invested for income and still retain access to the capital?

£80K could get you an annuity of about £5K. This is guaranteed for however long you live.

If you took out £5000 every year from an investment pot of £80K there is a reasonable chance you would run out of money before you died. http://www.firecalc.com/ estimates the chance as about 40% assuming you live for 30 years admittedly based on historical US data.

Fancy taking your chances?

bristol_pilot

Linton's calculation is correct, but the guy will be 95 years old by that time.

jamesd

pKaTz, basic state pension plus additional state pension will be around £7,000 a year for relatively young people, perhaps up to £8,000. So that would leave a £3,000 pension income target and you should easily be able to manage that on the sort of contributions you're considering. Your income will probably rise over time, though, so you'll probably become used to living on more money and want a higher retirement income.

bristol_pilot, with around half of all 65 year old men living beyond 87, using 95 doesn't seem like a particularly tough safety margin to want.

seven-day-weekend

The OP is not going to reach retirement age for another 33 years.

I certainly would not be relying on the means-tested State Benefits that may or may not exist at that time! They can be taken away as quickly and easily as they were given.

Make your own provision, then it is yours and will not be taken away.

dunstonh

The additional pension has been played around with and been retrospectively reduced 4 times (Serps & S2P). The self employed don't get it and there have been calls to remove it and end up with a single state pension. Its probably best not to assume you are going to get full qualification for it. I usually believe that its better to plan not to get it. If you do, then its bonus. If you dont then you havent left yourself short.

The basic state pension is £97.65 pw (which x52 = £5077.80)

mannypac74

Don't rely on the state to look after you when you retire. We never know what it'd be like in 33 years time. :eek:

The_Economist

pKaTz wrote: »

Hi, I'm 35, and working in a job with no pension scheme.

Ive asked before about stakeholders on here, but since then my circumstances have changed.

I am married with a 2yo. and earn about 12600 per year gross. My wife (31) earns about the same and has no pension either (she came to the UK in 2007)

What would be the most prudent way to start a pension for both me and my wife.

Can a pension be joint? or only in single names.

Someone here suggested that PMs (gold silver) could be held in a pension, how would that work. Does it mean that you have to pay a premium for your PM.

Yes i know its late to start a pension, but is working in a low paying job a good excuse?

I have tried to max out our cash ISAs each year, and am going thru the Pension vs ISA thread - but it is quite long.

Thanks for any answers.

I'm still trying to get my head around private pensions. I see and hear conflicting answers, i posted this last year and had a few replies
https://forums.moneysavingexpert.com/discussion/comment/20983267#Comment_20983267
The thing is at the moment as has been through history the majority seems to lose to the minority. In this case people on modest incomes trying to save for the future. One thing i do know is that if shares are involved the only person that wins every time is the share dealer.

pKaTz

The_Economist wrote: »

I'm still trying to get my head around private pensions. I see and hear conflicting answers, i posted this last year and had a few replies
https://forums.moneysavingexpert.com/discussion/comment/20983267#Comment_20983267
The thing is at the moment as has been through history the majority seems to lose to the minority. In this case people on modest incomes trying to save for the future. One thing i do know is that if shares are involved the only person that wins every time is the share dealer.

Thanks for that.
I am coming to the conclusion too that a pension is not for me.
As being on a lower income means atm other things do come first, therefore saving in an easily accessible isa makes sense.